FILM

Level 3, 55 Collins Street VICTORIA Melbourne VIC 3000 Australia [email protected] www.film.vic.gov.au ANNUAL FILM VIC T REPORT O R IA 

A NNU 2012/13 AL RE P ORT  2012/13 Contents Introduction 1 YEAR IN REVIEW 12 Report of Operations 16 Financial Statements 32

Film Victoria ABN 30214 952 770 Published by Film Victoria Melbourne Victoria Australia September 2013 Also published on www.film.vic.gov.au © Copyright State of Victoria 2013 This publication is copyright. No part may be reproduced by FRONT COVER BACK COVER any process except in accordance Vigilante: SPEAK FOR THE DEAD PONy TRAILS with the provisions of the Copyright Divisive Media Tantalus INSIDE INSIDE Act 1968. Supported through Games Investment Supported through Games Investment FRONT COVER BACK COVER Authorised by the This report is printed on Revive Laser, DANCE ACADEMY – SERIES 3 SAVE YOUR LEGS TED ANATOMY – SERIES 4 Victorian Government. an Australian made 100% recycled* Werner Film Productions Save Your Legs Pty Ltd Universal Pictures Matchbox Pictures uncoated paper. Revive Laser is FSC® Supported through Supported through Supported through Production Supported through Production Investment Production Investment Incentive Attraction Fund (PDV) Production Investment Design certified and carbon neutral. Revive also Aer Design supports Landcare Australia. THE HUNTER POSSUM WARS THE OYSTERMAN PRANK PATROL – SERIES 3 Brown Cab Productions 360 Degree Films Brown Cab Productions ActiveTV *The cover of this report is printed on 300gsm Print Revive Laser which is FSC® Mix Certified and Supported through Special Initiatives – Supported through Supported through Special Initiatives – Supported through Press Print 70% recycled. Indigenous Production Grants Production Investment Indigenous Production Grants Production Investment INTRODUCTION / 1 FILM VICTORIA IS THE STATE GOVERNMENT AGENCY THAT PROVIDES STRATEGIC LEADERSHIP AND ASSISTANCE TO THE FILM, TELEVISION AND GAMES SECTORS OF VICTORIA.

We invest in projects, businesses The Film Act 2001 defi nes CONSPIRACY 365 and people, and promote Victoria Film Victoria’s role as to Circa Entertainment Supported through Production as a world-class production provide: Incentive A raction Fund destination nationally and internationally. ‘ STRATEGICLEADERSHIP ANDASSISTANCETOTHE We work closely with industry FILMTELEVISIONAND and government to position MULTIMEDIAINDUSTRY Victoria as an innovation OFVICTORIATO leader through the growth and ENCOURAGEINNOVATION development of the Victorian ANDTHECREATIONOF screen industry. NEWPROJECTSOFHIGH QUALITYTHATAREOF Initially constituted as the ECONOMICORCULTURAL Victorian Film Corporation in BENEFITTOVICTORIA’ 1976 under an Act of Parliament, the Corporation became Film Victoria in 1982 by virtue of the Film Victoria Act 1981. In 1997, the functions of Film Victoria were amalgamated with those of the State Film Centre of Victoria to form Cinemedia Corporation, under the Cinemedia Act 1997. The Film Act 2001 abolished Cinemedia and established Film Victoria and the Australian Centre for the Moving Image as separate statutory authorities.

DANGEROUS REMEDY Eclipse Films Supported through Production Investment OUR VISION IS FOR VICTORIA TO HAVE A WORLD LEADING SCREEN ECONOMY AND CULTURE.

OUR MISSION IS TO LEAD AN INNOVATIVE SCREEN INDUSTRY WHICH ENRICHES OUR CULTURAL LIFE AND GENERATES JOBS, PROSPERITY AND CREATIVE OPPORTUNITIES.

OUR STAFF / Support the creation and production of original screen content, encourage audience engagement, provide professional and business development support, and foster a skilled workforce

/ Market and develop GALORE Victoria as a world-class Film Camp production destination, Supported through Script Development provide locations advice and Production Investment and facilitate productions

/ Develop industry policy and strategy, market and communicate industry opportunities and achievements, host and OUR facilitate industry events and work with the Board and Victorian Government

/ Manage the organisation’s VISION governance and fi nancial, legal, recoupment, human resources and information / technology requirements. OUR CORPORATE GOVERNANCE OUR We report to the Minister for Innovation, Services and Small Business, the Hon. Louise Asher MP and work closely with the Department of State MISSION Development, Business and Innovation (DSDBI). INTRODUCTION / 3 ORGANISATIONAL CHART

MINISTER FOR INNOVATION, SERVICES AND SMALL BUSINESS

DEPARTMENT OF STATE DEVELOPMENT, FILM VICTORIA BOARD BUSINESS AND INNOVATION

CHIEF EXECUTIVE OFFICER

SCREEN INDUSTRY SCREEN INDUSTRY FINANCE & BUSINESS PROGRAMS SERVICES SERVICES

Content Development Location & Finance Production Services Business Development Human Resources Programs Administration Production Incentives Legal & Contracting Marketing & Communications Production Investment Information Technology

Events & Industry Activities Policy & Government Relations

INFLUX Impromptu Games Supported through Games Investment

THE MYSTERY OF A HANSOM CAB Burberry Entertainment Supported through Production Investment

Ian Robertson – President Debra Allanson Ann Darrouzet Dan Fill Since September 2011 Since September 2010 Since September 2010 Since September 2010

Ian Robertson is a corporate Debra Allanson is an Ann has worked in the Dan is the co-founder of and media lawyer who heads online media specialist fi lm and television industry Chocolate Liberation Front, the media, entertainment and entrepreneur with for more than 30 years. an entertainment company and communications practice a background in fi lm and She is a graduate of the focused on quality and of national law fi rm Holding television production and NSW University of Technology innovation for all platforms. Redlich. He is also the Managing fi nancing in Australia and and VCA, and has worked as He produced THE Partner of the fi rm’s Sydney the United Kingdom. a creator, executive producer ADVENTURES OF FIGARO offi ce. Ian has worked in and She has over 20 years and producer across feature PHO for ABC3, MTV’s OSCURA for the media and entertainment experience at CEO and fi lms, documentaries, long-form for touchscreen, as well as the industries for most of his career, Board level. She leads the television and multiplatform interactive documentaries and including in the 1980s as business strategy, product content. Ann has won simulations to support SBS’ In-House Counsel for David development and capital raising national and international IMMIGRATION NATION, GO Syme & Co Limited, publisher eff orts of ventures working in awards including two AFIs, BACK TO WHERE YOU CAME of The Age newspaper in convergent areas of technology, an International Emmy, FROM and CBC’s KIDS IN THE Melbourne, and as a senior content and innovation. Debra a Banff Rockie and two HALL’S DEATH COMES TO executive of the video, is currently Executive Director A.T.O.M. awards. She has TOWN. Previously Dan was Head post-production and facilities of VUI, a company bringing won the Sydney Film Festival of Multi-Platform at ABC TV and company, AAV Australia a platform for creating and Dendy Award and the St Kilda Vice President of Toronto-based in South Melbourne. curating online video to market Film Festival Best Film Award Decode Entertainment. He is He became a partner of and launching a video sharing for her short fi lm work. Ann is one of the creators behind ABC Holding Redlich in Melbourne service designed for children. Managing Director of Westside iView and has been recognised in 1990 and established the Debra is also a Director of Film & Television and has been with numerous awards including fi rm’s Sydney offi ce in 1994. the creative services and engaged as an independent a 2013 AACTA Award, three 2013 He is also a director of the IP development company fi lm production consultant Kidscreen Awards, Canadian ASX-listed production and Ish Media, which provides to federal government New Media Producer of the distribution company, Beyond executive producer departments for the Year 2002 and Australian Digital International Limited. Ian’s services to creative teams past decade. Media Producer of 2009. former appointments include on fi lm, television and Deputy Chair of the Australian transmedia projects. Government screen agency Screen Australia, Board member of the Australian Broadcasting Authority, Director and Chair of Ausfi lm, Director and Deputy Chair of Film Australia Limited, and Director of the predecessor Jo Dawson Lyn Maddock AM, PSM agency to Film Victoria, Since November 2004 Since October 2011 Cinemedia. Ian is a Fellow of the Australian Institute Jo is a chartered accountant Lyn Maddock has more than of Company Directors. with extensive experience in 25 years of experience as fi nancial services and wealth an executive in the public management developed and private sectors, with a through senior roles at National background in research and Australia Bank and Deloi e. economics. For the past decade Jo brings a strong corporate she has worked within the governance background to government and media sectors, the Board through experience including with the Australian developed in a range of roles, Communications and Media including as Chief Financial Authority (ACMA) from Offi cer of National Financial 2005–2009 and as the Management. She is Managing Interim CEO of Screen Australia Director and Adviser with in 2008. Lyn has served on Executive Wealth Strategies, various boards including a fi nancial planning practice Deputy/Acting Chair of ACMA OUR established in 2002, and is and Deputy/Acting Chair of also a Director of the general the Australian Broadcasting insurance company Catholic Authority. From 2009 to 2011, Church Insurance Limited and Lyn was the Director of the listed investment company Australian Antarctic Division. BOARD Templeton Global Growth Fund Ltd. INTRODUCTION / 5

Michael McMahon Caroline Pitcher Jan Sardi Daryl Talbot Since February 2010 Since February 2013 Since September 2007 Since September 2011

Michael, a former lawyer with Caroline Pitcher is Director Jan Sardi is one of Australia’s Daryl Talbot is CEO of WTFN extensive experience in arts of Marketing and Enterprise eminent screenwriters. Entertainment – an independent and entertainment law, has Solutions for Deluxe Australia, In 1997 he received an television production company been Director of the Arts the leading provider of Academy Award Nomination based in Melbourne which Law Centre of Australia and digital and entertainment for his screenplay for SHINE, produces shows such as Bondi the National Indigenous Arts services to the fi lm, television as well as nominations for Vet and the award winning story Advocacy Association and and advertising industries BAFTA, the Writers Guild of conjoined twins TRISHNA has served on boards of worldwide. She is a Board of America, and the Golden &KRISHNA THEQUESTFOR several arts and cultural member of Ausfi lm, the Globes. In 2003 he wrote and SEPARATELIVES. Daryl started organisations. He commenced public/private partnership directed the award-winning at WTFN in 2001 a er nearly producing fi lm and television organisation that connects fi lm LOVE’S BROTHER, 20 years working as a news projects in 1997 and is a international fi lmmakers with an Australian/UK production. reporter and producer for Director of Matchbox Pictures. the Australian screen industry, He also adapted the hit fi lms network television in Australia and is also the immediate THE NOTEBOOK and MAO’S and the UK. This included past President of the Screen LAST DANCER for the screen. 15 years at Australia’s Nine Services Association of Jan’s current projects include Network producing news, Victoria. Caroline has over ten adaptations of THE SECRET documentaries and lifestyle years experience working in the RIVER by Kate Grenville as shows. Under his leadership fi lmed entertainment industry a mini-series for the ABC, WTFN has grown to be one in general management and REMARKABLE CREATURES of Australia’s most dynamic marketing and business by Tracy Chevalier, and independent television David Parker development roles for both MULAN, a Chinese/Australian production companies. Daryl is Since September 2010 government and private sectors co-production for producer now focused on growing WTFN including with Omnilab Media Emile Sherman. Jan is internationally by creating a new David’s fi rst fi lm MALCOLM, as Marketing and Business President of the Australian range of programs with broad directed by Nadia Tass, was a Development Director, Writers’ Guild. appeal to global audiences. critical and box offi ce success CEO at Ausfi lm and General winning eight AFI awards and Manager of Film Victoria’s was released in 22 countries. Melbourne Film Offi ce. His role as producer, writer RETIRED MEMBER and cinematographer continues Kim McGrath on in varying forms with features February 2010–January 2013 and television movies such as THE BIG STEAL, AMY, HERCULES RETURNS, PURE LUCK, KATH AND KIMDERELLA and his latest fi lm FATAL HONEYMOON with Harvey Keitel. His 2010 fi lm, MATCHING JACK, won Best Film, Best Director and Best Screenplay at the Milan International Film Festival in 2011. David’s company with Nadia, Cascade Films, owned and operated the successful Melbourne Film Studio for 25 years. David was a Commissioner on the Australian Film Commission a er an early career as one of Australia’s foremost movie stills photographers.

MR & MRS MURDER Fremantle Media Australia Supported through Production Investment

OUR CORPORATE P N OUTLINES OUR STRATEGIC OBJECTIVES AND PRIORITY AREAS FOR 2010–2013.

OBJECTIVE 1 OBJECTIVE 2 Drive industry growth that a racts Increase and broaden audience engagement investments, exports and jobs with Victorian and Australian screen content

/ Support Victorian screen businesses / Support local content that refl ects Australian to drive industry growth perspectives, resonates with local audiences and can achieve international recognition / Provide assistance to increase production activity in Victoria / Support organisations that increase and broaden audience engagement / Market Melbourne and provincial Victoria in screen culture as a world-leading production destination to encourage activity in Victoria OBJECTIVE 3 / Maximise opportunities for Victorian Shape policies and practice to achieve crews to expand their skills base industry growth

/ Support screen industry practitioners / Lead advocacy or strategic policy projects to upskill in content creation and for the industry in identifi ed areas of need business development areas

OUR STRATEGIC OBJECTIVES INTRODUCTION / 7

DANCE ACADEMY – SERIES 3 Werner Film Productions Supported through Production Investment

OBJECTIVE 4 Enhance organisational capability to deliver the organisation’s Corporate Plan

/ Maintain corporate governance through policies, procedures, relevant legislation and Departmental standards and improve organisational effi ciency

/ Value our staff and enhance their skills and capability to the benefi t of the individual and the organisation

HOUSE HUSBANDS Playmaker Media Supported through Production Investment  I AM PLEASED TO PRESENT THE 2012/13 FILM VICTORIA ANNUAL REPORT.

2012/13 has been a productive The 2013/14 Victorian State year for the Victorian screen Budget provided additional industry, marked by a strong funding of $8.5 million to mix of notable local, interstate Film Victoria over the next and international production four years, directly targeted activity. to boost development and production in the television, This year, Victoria further animation and games sectors cemented its reputation as ensuring we can continue a competitive centre for to deliver eff ective programs screen production, with a and services to industry. total of 58 fi lm and television and projects commencing This signifi cant fi nancial production. commitment refl ects the important contribution of This substantial level the screen industry to the of production has been economy, as well as the social supported by the Victorian and cultural fabric of Victoria. Government, through It demonstrates the Victorian Film Victoria. Of the estimated Government’s confi dence in total $185.5 million spent the Victorian screen industry’s on feature fi lm and television talent, innovation and ability production in Victoria this to deliver projects of economic year, Film Victoria enabled and cultural merit. $139.2 million of production expenditure. Together with The Victorian Government also the expenditure from 13 games commi ed $5.3 million in funding which went into production, to support the Melbourne this generated a total of International Film Festival over $141.6 million in production the next four years, providing expenditure and 5,810 jobs in fi nancial certainty for Australia’s the Victorian screen industry. most signifi cant screen event.

A MESSAGE FROM OUR PRESIDENT INTRODUCTION / 9

Film Victoria’s Board and Sincere thanks to Kim McGrath senior management have for the public policy and “VICTORIA HAS FURTHER continued to focus on ensuring governance expertise she CEMENTED ITS REPUTATION that Film Victoria operates as provided as a Board member effi ciently as possible so as to over the past three years. AS A COMPETITIVE CENTRE deliver the maximum benefi t I would also like to particularly FOR SCREEN PRODUCTION. to the Victorian industry. thank Jo Dawson for her This is a continuing process nine years of service as a FILM VICTORIA PROGRAMS which involves a careful Film Victoria Board member. GENERATED $141.6 MILLION assessment of all of Her insight and experience of Film Victoria’s programs fi nancial and risk management OF PRODUCTION EXPENDITURE to ensure that they eff ectively has been of great assistance to IN THE STATE AND 5,810 JOBS deliver appropriate levels the Board and to Film Victoria. of support. FOR VICTORIANS.” I also thank and acknowledge I thank the Premier, the Hon. Film Victoria’s CEO, Jenni Tosi, Dr Denis Napthine MP, for her leadership. She has his predecessor, the Hon. brought great commitment, Ted Baillieu MP, and the enthusiasm and experience Minister for Innovation, to the role. Services and Small Business, the Hon. Louise Asher MP for I thank Film Victoria’s their support of Film Victoria staff and the industry as we continue to deliver on practitioners who serve the Victorian Government’s on our various commi ees, priorities for the fi lm, television for their considerable eff orts and games sectors. to ensure the Victorian screen industry continues its success. I wish to recognise the contribution of my fellow Board members and thank them for their service, and I welcome new member Caroline Pitcher, who brings valuable experience to Ian Robertson the Board. President Film Victoria  ON BEHALF OF FILM VICTORIA, I’M PLEASED TO PRESENT THIS YEAR’S ANNUAL RESULTS.

In my second year as CEO Signifi cantly, we saw and heard it has been a stimulating and more Victorian stories on screen, satisfying experience to see with fi lm and television projects the contribution the dedicated we supported receiving staff at Film Victoria have made 94 million Australian views in to support screen practitioners 2012/13 – an increase of more to develop, produce and than 30 million views over the distribute great content to previous year. audiences in Australia and around the world. These productions have also achieved signifi cant sales The growing appetite for into foreign territories, which Australian content, both is immensely rewarding for in Australia and overseas, all those practitioners who has resulted in impressive contributed to the success audience viewership of of these projects. content created by Victorian companies in 2012/13.

“ VICTORIA’S SCREEN PRODUCERS ARE TO BE CONGRATU TED ON THEIR SUCCESSES. THEIR ENERGY TALENT AND COMMITMENT TO THEIR CRAFT KEEP THEM AT THE FOREFRONT OF AUSTRALIA’S SCREEN INDUSTRY.”

A MESSAGE FROM OUR CEO INTRODUCTION / 11

The $141.6 million of production Noticeably, this year saw This year we recognised the I wish to thank the Board for expenditure achieved through an increase in high calibre importance of leadership to their support and guidance Film Victoria’s support of telemovies making their mark the overall fabric of our local throughout the year. I also 54 feature fi lm, television on the broadcasting landscape, screen industry by establishing thank the wonderful staff and games projects created including UNDERGROUND: the Victorian Screen Leader at Film Victoria who have signifi cant opportunities for THE JULIAN ASSANGE Awards, named in honour maintained their commitment Victorian businesses and STORY, THE MYSTERY OF of former Board member and enthusiasm through a 5,810 jobs for Victorian screen A HANSOM CAB, CLIFFY and producer Jill Robb and challenging year. In particular, practitioners. This is a strong and DANGEROUS REMEDIES former Film Victoria President I’d like to thank Steve Warne, outcome for Victoria. all enjoying great audience John Howie. The awards Kate Marks, Emma Cornall, approval, alongside some acknowledge leadership, Nesreen Botriell, Shae Quabba Local production remained excellent television series achievement and service to and Charlie Carman for their strong despite the competitive such as THE DOCTOR BLAKE the Victorian screen industry. contribution to the organisation nature of the screen industry, MURDER MYSTERIES, The inaugural winners were and the industry. These long- and congratulations should be JACK IRISH – DEAD POINT, producer Sue Maslin and serving staff members moved extended to all practitioners MISS FISHER’S MURDER Lemac Film and Digital on to new opportunities during who received fi nancing and MYSTERIES and HOUSE (helmed by Sue Greenshields 2012/13. I would like to express commissions for their projects HUSBANDS. and the late John Bowring), my particular thanks to the Hon. in this environment. Film Victoria all of whom have made Louise Asher, the Minister for was able to assist producers This year we supported a signifi cant contribution Innovation, Services and Small through a commitment of more 14 of the 24 Victorian feature to the Victorian screen Business, who continues to than $5.8 million to 27 local fi lm projects commencing industry over many years. be a strong advocate for the projects in 2012/13 through production, generating Victorian screen industry. our Screen Production – $31.4 million in expenditure. Another highlight was our Investment program. We anticipate a bumper crop industry event, Connect To all our screen practitioners, of feature fi lms being screened with Subscription TV, congratulations on your Television production in the coming year from these a forum for local practitioners successes. Your energy, talent continues to underpin activity commitments. to engage with Australia’s and commitment to your cra in the industry, with a total of cable subscription television keep Victoria at the forefront 34 projects beginning production The games sector continued executives, which was of Australia’s screen industry. in 2012/13. We supported 27 of to move from strength a sell-out. these projects, generating spend to strength, and we were We look forward to continuing of $107.8 million – an increase pleased to launch two new to support you in the coming of more than $17 million on games programs in 2012/13, year to drive production activity the previous year. developed in consultation and bring more of your stories with the games sector. Through and ideas to the screen. Screen Development – Games and Screen Marketing – Games Release we commi ed more than $550,000 across 16 games projects, including FIGARO PHO, VIGALANTE and Jenni Tosi ARMELLO. Chief Executive Offi cer Film Victoria  THE BIG PICTURE The Victorian screen industry is generating In 2012/13, Film Victoria’s screen funding new and high value projects in challenging programs for fi lm and television generated economic times. $139.2 million in production expenditure. Our games programs generated $2.4 million, A total of 58 fi lm and television projects making a total in production expenditure commenced production in Victoria in 2012/13, of $141.6 million in Victoria this year. spending an estimated $185.5 million in the state. The projects we supported created The total value to our economy of projects by 5,810 jobs for Victorians. Victorian screen practitioners has increased from $104 million in 2010/11 to $151 million in 2012/13.

The average value per Victorian project has also increased from just below $2.4 million in 2010/11 to just over $2.8 million this year.

The value of Victorian fi lm and The average value per Victorian project has television projects is growing each year increased by almost $400k since 2010/11

International Projects Interstate Projects Victorian Projects

250m 2.9m

200m 2.7m

150m

2.5m

100m

2.3m 50m

0 2010/11 2011/12 2012/13 2.1m 2010/11 2011/12 2012/13

YEAR IN REVIEW YEAR IN REVIEW / 13

FILM TV GAMES 24 34 13 Number of fi lms beginning Number of television projects Number of games beginning production in 2012/13. beginning production in production supported by 2012/13. Film Victoria in 2012/13. $35.0m Total production $150.5m 10 expenditure in Victoria. Total production expenditure Number of businesses in Victoria. supported through Screen $31.4m Marketing – Games Release. We provided funding support $107.8m to 14 of these fi lms, stimulating We provided funding support $2.4m $31.4 million production to 27 of these projects, We provided funding expenditure. which generated expenditure support to 13 games that of $107.8 million in Victoria, moved into production an increase of $17.8 million generating expenditure on 2011/12. of $2.4 million.

MISS FISHER’S MURDER MYSTERIES Every Cloud Productions Supported through Fiction Television Co-funding, Production Investment and Regional Location Assistance Fund

GAME MASTERS: THE FORUM Australian Centre for the Moving Image (ACMI)  OUR PROGRAMS IN 2012/13 Through our Screen Production Through our Screen Development Through our Screen Business – Investment program we program and initiatives we program we commi ed commi ed funding to: commi ed funding to: funding to:

/ Seven fi ction feature fi lms, / 24 fi ction projects / Six producers to conduct for a total commitment (22 features and international business of $1.5 million two television), with a total commitment / Eight producers whose / 12 fi ction television projects, of $598,750 projects where invited to for a total commitment of screen at international $3.5 million / 20 documentary projects festivals. (ten features and ten / Eight documentary feature television), with a total Through our Screen Marketing and television projects, for a commitment of $161,700 – Games Release program total commitment of $650,704. we commi ed funding to: / Six games projects, That’s a total investment with a total commitment / Ten projects, with a total commitment of $5.8 million of $339,617. commitment of $215,187. to 27 local projects. That’s a total development commitment of $1.1 million to 50 local projects.

Screen Production – Investment Screen Development total funding commi ed to projects total funding commi ed to projects

Documentary Fiction Games Documentary Fiction

8m 2m

7m

6m 1.5m

5m

4m 1m

3m

2m 500k

1m

0 2010/11 2011/12 2012/13 0 2010/11 2011/12 2012/13

Total funding commi ed Development Production Investment to projects through investment and 8m development 7m

6m

5m

4m

3m

2m

1m

0 2010/11 2011/12 2012/13 YEAR IN REVIEW / 15 ATTRACTING CONNECTING Australian views of Victorian content PRODUCTIONS WITH AN TO MELBOURNE AUDIENCE We a racted ten projects Film and television projects we (for production or post- supported received 94 million production) to Victoria through Australian views in 2012/13. our Production Incentive A raction Fund (PIAF). Each year we support a range 64m of events and organisations to Combined, they’re expected engage local audiences with to spend around $35.8 million screen content and culture 2011/12 in Victoria. from around the world. These include: We supported four projects that commenced production / Melbourne International in regional Victoria in 2012/13 Film Festival through our Regional Locations Assistance Fund (RLAF). These / St Kilda Film Festival projects spent an estimated $1 million in Victorian regional / The Indian Film Festival communities. of Melbourne 94m / The TV Week Logie Awards

/ Game Masters Symposium. 2012/13

More than 4.5 million people engaged in screen culture activities we supported in 2012/13. OUR INDUSTRY EVENTS AND ACTIVITIES We hosted and facilitated a range of events for industry in 2012/13, including: 1 Connect with Subscription Television (July 2012) Major industry forum Screen Leader Awards (October 2012) 4 Seen & Screened (March 2013) Networking, awards and recognition events Logies Industry Networking event (April 2013)

International TV Emmy judging (September 2012) SPAA, AWG and SSAV briefi ngs (October 2012) 9 Two feature fi lm-focussed industry discussion groups (February 2013) Professional development, Business Planning seminar for games companies (April 2013) industry briefi ng and consultation events SPAA Roadshow (April 2013)

NITV-SBS and Screen Agencies consultation day and industry briefi ng (May 2013)

Principal partner of the annual SPAA Conference (November 2012) ABC Kids and Animation (August 2012) 2 SBS (September 2012) ‘Meet the Broadcasters’ events Berlin Film Festival’s Mary Redpath (October 2012) 3 US Producer Jack Binder (November 2012) ‘Meet our Local Practitioners’ for international Venice Film Festival’s Paolo Bertolin (June 2013) festival selectors and producers 16 REPORT OF OPERATIONS 2012/13

ACCOUNTABLE OFFICER’S MAJOR CHANGES OR FACTORS DEC RATION AFFECTING ACHIEVEMENT OF In accordance with the Financial Management Act 1994, OBJECTIVES I am pleased to present the Annual Report for Film Victoria In 2012/13 Film Victoria was able to support additional television for the year ending 30 June 2013. and digital media production through reprioritisation of funds. In addition, Film Victoria secured a number of large budget television series, including some repeat series including OFFSPRINGSeries4 WENTWORTHMR&MRSMURDERHOUSEHUSBANDS MISSFISHER’SMURDERMYSTERIESTHEWORSTYEAR OFMYLIFEAGAIN and THEDOCTORBLAKEMYSTERIES.

Jenni Tosi Some of these series have relatively higher leveraging returns and Chief Executive Offi cer employment opportunities than might normally be expected from Film Victoria the historical mix of genres supported by Film Victoria, and build on Victoria’s natural strength in television production. 26 August 2013 In some instances, previous Film Victoria development and/or investment support has been provided to these series. OPERATIONAL AND BUDGETARY OBJECTIVES AND PERFORMANCE AGAINST OBJECTIVES We report to government on a series of budgetary and performance outputs with associated targets. Results for the 2012/13 reporting period are:

TARGET ACTUAL Value of fi lm, television and $ million 57.0 141.6 digital media production supported by Film Victoria Additional employment actual job 1,800 5,810 from production supported opportunities by Film Victoria (p/time, f/time or contract) REPORT OF OPERATIONS / 17

FIVE YEAR FINANCIAL SUMMARY

30-JUN-13 30-JUN-12 30-JUN-11 30-JUN-10 30-JUN-09 $$$$$ Revenue from Government 15,317,163 17,541,463 22,416,426 20,809,000 20,730,000 Other revenue 2,607,103 2,919,970 3,050,564 3,094,923 3,894,517 Total revenue 17,924,266 20,461,433 25,466,990 23,903,923 24,624,517

Total project costs 15,701,961 15,547,946 17,903,124 15,522,408 19,489,258 Net operating result (5,047,085) (2,083,022) (253,275) 1,290,956 (1,295,603) Net cash fl ow (6,173,056) 1,289,711 4,486,077 (606,426) (2,346,777) Total assets 28,420,872 32,552,887 34,567,501 34,624,312 33,306,060 Total liabilities 1,966,514 1,051,445 983,035 786,572 759,276

Allocation of cash assets Outstanding commitments (1) 17,692,606 20,298,110 20,579,849 18,595,276 16,627,595 Commitment to industry development (4,903,309) (2,830,757) (932,804) 978,023 4,716,497 Cash Flow Facility funds 12,888,277 14,383,277 10,913,873 6,501,542 5,337,177 Total cash assets 25,677,574 31,850,630 30,560,918 26,074,841 26,681,269

Receivables – including Producer Loans 1,125,359 499,356 3,549,970 8,040,846 5,966,300 Property, Plant and Equipment 1,617,939 202,901 456,613 508,625 658,491 Total non-cash assets 2,743,298 702,257 4,006,583 8,549,471 6,624,791 Total assets 28,420,872 32,552,887 34,567,501 34,624,312 33,306,060

Note (1) Commitments for 2012/13 and 2011/12 include GST. Previous years are exclusive of GST. 18 OVERVIEW OF FINANCIAL PERFORMANCE AND POSITION DURING 2012/13

Revenue from Government Net Cash Flow The total funding package from government to Film Victoria The major factors aff ecting the variability of net cash fl ows are was $15.3 million in 2012/13. program payments and cash fl ow loans. During 2012/13 there was a decrease in net cash fl ows, due to a decrease in government Total government funding in 2012/13 was lower than the previous funding, a transfer from the Cash Flow Facility to Film Victoria, year. This decrease was a ributed to the completion of funding and an increase in program payments related to previous years. for specifi c initiatives and an increase in Sustainable Government Initiative targets. This was partially off set by a signifi cant reduction in advances made from the Cash Flow Facility. The net result was a decrease Other Revenue in cash held by Film Victoria. Other revenue in 2012/13 was lower than previous years as Further details of cash fl ows are contained in the Financial a result of a decrease in interest revenue due to falling interest Statements of this Annual Report. rates. This was off set by an increase in program recoupments. These recoupments, as in previous years, are directed back Total Assets into various programs during the fi nancial year. The decrease in total assets during 2012/13 is predominantly due to the decrease in cash assets outlined above. Part of this is off set Net Operating Result by an increase in non-cash assets due to leasehold improvements Timing factors infl uence how our fi nances are reported. on Film Victoria’s new premises. These timing factors are outlined below: Outstanding Commitments / Film Victoria is required to recognise all government funding as well as other income it receives as revenue within the The value of outstanding commitments represents the level of fi nancial year that it is received fi nancial commitments still to be disbursed by Film Victoria as at 30 June 2013. Disbursement is dependent on the achievement / During a fi nancial year a substantial portion of the revenue of contracted milestones and deliverables. received is allocated to various funding programs that result in fi nancial commitments to successful applicants. In turn, a substantial portion of the fi nancial commitments may remain Commitment to Industry Development undisbursed at the end of the fi nancial year. This is primarily due to contracted milestones or deliverables that are still outstanding This is the aggregate amount of cash held and commi ed to a er contracts are executed. As a result, during any one fi nancial fund industry development initiatives, programs carried forward year, Film Victoria may make disbursements that arise from into future periods and outstanding balance sheet liabilities as at fi nancial commitments outstanding from previous years 30 June 2013. Due to funding pressures and an ongoing high level of demand on available funding, the balance this year is negative / During a fi nancial year there may be additional industry and will be funded from future government appropriation. development commitments made and partly or wholly disbursed using funds received in previous years. Cash Available only for the Cash Flow Facility The reduction in the net operating result in 2012/13 is primarily This is the aggregate amount of cash available to meet future due to a decrease in government funding, as well as increased Cash Flow Facility loans. During 2012/13 a transfer from the Cash program payments related to previous years. As a result, Flow Facility to Film Victoria was approved. These cash holdings there is an accounting defi cit of $5 million for 2012/13. are also represented in the total assets balance as at 30 June 2013.

Subsequent Events There have been no events subsequent to balance sheet date aff ecting the operations of Film Victoria. REPORT OF OPERATIONS / 19

A estation on Compliance with The Australian/ Employment and Conduct Principles New Zealand Risk Management Standard We abide by the principles outlined in the Public Administration I, Ian Robertson, certify that Film Victoria has risk management Act 2004. These principles include: processes in place consistent with AS/NZS ISO 31000:2009 and an internal control system is in place that enables the executive / Responsiveness to understand, manage and satisfactorily control risk exposures. / Integrity The Film Victoria Board verifi es this assurance and that the risk profi le of Film Victoria has been critically reviewed within the / Impartiality last 12 months. / Accountability / Respect / Leadership / Human rights. Ian Robertson President The Film Act 2001 also provides guidance for our executive Film Victoria and staff on confl ict of interest issues. A estation for compliance with the Ministerial We are an equal opportunity employer and are governed by the principles of the Equal Opportunity Act 2010, as well as being Standing Direction 4.5.5.1 – Insurance bound by the privacy standards articulated in the Information Privacy Act 2000. We are commi ed to applying merit and equity I, Ian Robertson, certify that Film Victoria has complied principles when appointing staff . We provide position descriptions with Ministerial Direction 4.5.5.1 – Insurance. for all employees and potential candidates and have established procedures for recruiting new staff members and managing employee relations to ensure that applicants are assessed and evaluated fairly. All staff members are provided a copy of the Code of Conduct for the Victorian Public Sector upon joining Ian Robertson our organisation. Further information regarding the ethical President and professional values of our organisation is outlined in our Film Victoria Film Victoria Collective Agreement 2012 , which can be found at www.fi lm.vic.gov.au. Human Resource Management Under the Occupational Health and Safety Act 2004, Film Victoria has a responsibility to provide facilities to ensure that the health and welfare of all employees is protected. We are responsible for ensuring that, where practicable, the workplace is safe and without risk to the health and safety of all staff members.

Our Occupational Health and Safety Commi ee, which meets quarterly, has employee representation from management and staff . During the reporting period four incidents were reported: two of which related to falls; one from the li closing on a staff member; and one resulting in a fi nger laceration. 20 COMPARATIVE WORKFORCE DATA(iv)(v)

Table 1: Full Time Equivalent (FTE) Staffi ng Trends from 2009 to 2013(ii)(vi)

2013 2012 2011 2010 2009

40.8 44.2 49.3 45.5 44.6

Table 2: Employment Status of Employees

ONGOING FIXED TERM AND CASUAL EMPLOYEES(I) EMPLOYEES EMPLOYEES FULL TIME PART TIME (HEADCOUNT) (HEADCOUNT) (HEADCOUNT) FTE(ii) FTE(II) June 2013 24.0 23.0 1.0 23.2 12.6 June 2012 37.0 30.0 7.0 33.2 11.0

Table 3: Gender

2013 2012 FIXED TERM AND FIXED TERM AND

ONGOING(I) CASUAL EMPLOYEES ONGOING(I) CASUAL EMPLOYEES EMPLOYEES EMPLOYEES

(HEADCOUNT) FTE (HEADCOUNT) FTE(II) FTE(II) Gender Male 6.0 6.0 3.0 7.0 6.0 3.0 Female 18.0 17.2 9.6 30.0 27.2 8.0 Tot a l 24.0 23.2 12.6 37.0 33.2 11.0

Age Under 25 –– ––– – 25–34 6.0 6.0 1.6 13.0 12.2 4.2 35–44 13.0 12.2 3.0 18.0 16.0 2.8 45–54 1.0 1.0 4.0 1.0 1.0 2.0 55–64 3.0 3.0 4.0 4.0 3.0 2.0 Over 64 1.0 1.0 – 1.0 1.0 – Tot a l 24.0 23.2 12.6 37.0 33.2 11.0

Classifi cation VPS 1 –– ––– – VPS 2 4.0 3.2 2.0 6.0 5.4 1.2 VPS 3 6.0 6.0 – 10.0 9.4 2.0 VPS 4 5.0 5.0 2.0 7.0 6.5 1.8 VPS 5 5.0 5.0 4.6 4.0 4.0 2.0 VPS 6 2.0 2.0 4.0 9.0 6.9 4.0 STS –– ––– – Exec Offi cer 2.0 2.0 – 1.0 1.0 – Tot a l 24.0 23.2 12.6 37.0 33.2 11.0

Notes (i) Ongoing employees includes people engaged on an open ended contract of employment and executives engaged on a standard executive contract who were active in the last full pay period of June. (ii) FTE means full time staff equivalent. (iii) All fi gures refl ect employment levels as at the last full pay period in June of each year. Five established vacant positions were vacant at 30 June 2013. (iv) Excluded are those on leave without pay or absent on secondment, external contractors/consultants, and temporary staff employed by employment agencies, and a small number of people who are not employees but appointees to a statutory offi ce, as defi ned in the Public Administration Act 2004. (v) Excluded are those on paid maternity leave (FTE 2.2, Headcount 3.0). (vi) Includes vacant positions. REPORT OF OPERATIONS / 21 EXECUTIVE OFFICER DATA

Table 1: Breakdown of Executive Offi cers Classifi ed into ‘Ongoing’ and ‘Special Projects’ at 30 June 2013

All ongoing ALL ONGOING SPECIAL PROJECTS CLASS NO. VAR NO. VAR NO. VAR EO1 –– –––– EO2 1– 1––– EO3 11 11–– Tot a l 21 21––

Notes Film Victoria has no ‘special projects’ executives. The position of Head of Finance and Business Services (EO-3) was fi lled during the fi nancial year. Table 2: Breakdown of Executive Offi cers Classifi ed into Gender for ‘Ongoing’ and ‘Special Projects’ at 30 June 2013

ONGOING SPECIAL PROJECTS MALE FEMALE VACANCIES MALE FEMALE VACANCIES CLASS NO. VAR NO. VAR NO. NO. VAR NO. VAR NO. EO1 –––– –––––– EO2 ––1– –––––– EO3 11– –––––– Total 111– ––––––

Table 3: Reconciliation of Executive Numbers

2013 2012 Executives with remuneration over $100 000 (Financial Statement Note 14) 21 Add Vacancies (Table 2) –1 Executives employed with total remuneration below $100,000 –– Accountable Offi cer (Secretary) – Less Separations –1 Total executive numbers at 30 June 2 1 22 Industrial Disputes We work cooperatively with the Community and Public Sector Union (CPSU), the Media Entertainment and Arts Alliance (MEAA) and staff representatives. No days were lost in the year as a result of an industrial dispute.

Enterprise Agreement The Film Victoria Collective Agreement 2012 was approved by Fair Work Australia and came into eff ect on 16 January 2013. The terms and conditions of the current Agreement are largely in alignment with the terms and conditions of the Victorian Public Service Agreement.

Victorian Industry Participation Policy In October 2003, the Victorian Parliament passed the Victorian Industry Participation Policy Act 2003, which requires public bodies and departments to report on the implementation of the Victorian Industry Participation Policy (VIPP). Departments and public bodies are required to apply VIPP in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria. Film Victoria completed no tenders or contracts to which the VIPP applied during the reporting period.

Details of Consultancies over $10,000 In 2012/13, there were four consultancies where the total fees payable to the consultants were $10 000 or greater. The total expenditure incurred during 2012/13 in relation to these consultancies is $227,495 (excl. GST).

TOTAL APPROVED EXPENDITURE FUTURE PROJECT FEE 2012/13 EXPENDITURE PURPOSE OF (EXCLUDING (EXCLUDING (EXCLUDING CONSULTANT CONSULTANCY START DATE END DATE GST) GST) GST) Jones Lang Assist with reviewing 8-Apr-12 30-Sep-12 $22,000 $16,000 Nil LaSalle accommodation due to lease expiring in February 2013 Godfrey Spowers Project and construction 13-Aug-12 28-Feb-2013 $98,500 $86,870 $11,630 (Victoria) management to assist Pty Ltd Film Victoria with design, fi t-out and relocation to new premises Allegra Project coordination 2-Jul-12 31-Oct-12 $60,000 $66,825 Nil Consulting of organisation review Pty Ltd Symplicit Pty Ltd Review of Film Victoria’s 15-Mar-13 29-May-13 $86,800 $57,800 $29,000 funding application processes

Details of Consultancies under $10,000 In 2012/13 Film Victoria engaged one consultancy where the total fees payable to the consultant was less than $10,000, with total expenditure of $8,443 (excluding GST). REPORT OF OPERATIONS / 23 Disclosure of Major Contracts Compliance with the Protected Disclosure Act Film Victoria did not enter into any contracts greater than 2012 (formerly, the Whistleblowers Protection $10 million in 2012/13. Act 2001) The Protected Disclosure Act 2012 encourages and assists people Freedom of Information to make disclosures of improper conduct or detrimental action by public offi cers and public bodies. The Act provides protections to The Freedom of Information Act 1982 allows the public a right people who make disclosures in accordance with the legislation and of access to documents held by Film Victoria. establishes a system for the ma ers disclosed to be investigated and for rectifying action to be taken. Film Victoria received one valid application in 2012/13. The application was from a journalist, who was granted The Protected Disclosure Act 2012 commenced on 10 February 2013 access to the documents requested. when the Whistleblowers Protection Act 2001 was repealed (transitional provisions provide for ma ers arising under the former Making A Request legislation to continue to be managed in accordance with that Access to documents may be obtained through wri en request legislation). As the change of legislation occurred during the fi nancial to the Freedom of Information Manager, as detailed in s17 of year 2012/13, this report complies with the requirements of both the Freedom of Information Act 1982. In summary, the requirements Acts for the relevant time periods. Film Victoria staff have received for making a request are: guidance on implementation of new policies and procedures relating a. It should be in writing to the Protected Disclosure Act 2012. b. It should identify as clearly as possible which document Film Victoria does not tolerate improper conduct by employees, nor is being requested, and the taking of reprisals against those who come forward to disclose such conduct. Film Victoria is commi ed to ensuring transparency c. It should be accompanied by the appropriate application and accountability in its administrative and management practices, fee (the fee may be waived in certain circumstances). and supports the making of disclosures that reveal corrupt conduct, Requests for documents in the possession of Film Victoria conduct involving a substantial mismanagement of public resources, should be addressed to: or conduct involving a substantial risk to public health and safety or the environment. Freedom of Information Manager Film Victoria Film Victoria will take all reasonable steps to protect people who Level 3, 55 Collins Street make such disclosures from any detrimental action in reprisal for Melbourne VIC 3000 making the disclosure.

Requests can also be lodged online at www.foi.vic.gov.au. Reporting procedures The key contact for making disclosures of improper conduct or Access charges may also apply once documents have been detrimental action by Film Victoria or its employees is the Protected processed and a decision on access is made; for example Disclosure Coordinator. This role is performed by Film Victoria’s photocopying and search and retrieval charges. Legal Manager.

Further information regarding Freedom of Information can Disclosures may also be made to: be found at www.foi.vic.gov.au. / the Chief Executive Offi cer of Film Victoria Building Act 1993 / a manager or supervisor of a person who chooses to make a disclosure, or Film Victoria does not own or control any government buildings and consequently is exempt from notifying its compliance with / a manager or supervisor of a person about whom the building and maintenance provisions of the Building Act 1993. a disclosure has been made. Contact details for disclosure parties are: National Competition Policy Legal Manager Film Victoria continues to be compliant with the National Film Victoria Competition Policy (NCP), including compliance with the Level 3 requirements of the policy statement Competitive Neutrality: 55 Collins Street A Statement of Victorian Government Policy, the Victorian Melbourne VIC 3000 Government Timetable for the Review of Legislative Restrictions on Competition and any subsequent reforms. Telephone (03) 9660 3200 Email alison.bird@fi lm.vic.gov.au Film Victoria continues to work to ensure that Victoria fulfi ls its requirements on competitive neutrality reporting for technological Chief Executive Offi cer based businesses against the enhanced principles as required Film Victoria under the National Reform Agenda (NRA). Level 3 55 Collins Street Melbourne VIC 3000

Telephone (03) 9660 3200 Email jenni.tosi@fi lm.vic.gov.au

Alternatively, disclosures of improper conduct or detrimental action by Film Victoria or its employees may also be made directly to the Independent Broad-based Anti-corruption Commission (IBAC). 24 The Independent Broad-based Disclosures under the Whistleblowers Protection Act Anti-corruption Commission (IBAC) Victoria 2001 (those made up to 9 February 2013) Level 1 North Tower The archived procedures established under the Whistleblowers 459 Collins Street Protection Act 2001 are available upon request Melbourne VIC 3001 THE NUMBER AND TYPES OF DISCLOSURES MADE TO PUBLIC BODIES 2012–13 2011–12 Phone 1300 735 135 FROM 1 JULY 2012–9 FEBRUARY 2013 NUMBER NUMBER Mail IBAC, GPO Box 24234 Public interest disclosures 00 Melbourne VIC 3000 Internet www.ibac.vic.gov.au Protected disclosures 00 Email see the website above for the The number of disclosures referred secure email disclosure process, during the year by the public body to which also provides for anonymous the Ombudsman for determination as to disclosures whether they are public interest disclosures 00 Further information The number and types of disclosed The Protected Disclosure Policy and Procedures, which outline ma ers referred to the public body the system for reporting disclosures of improper conduct or by the Ombudsman for investigation 00 detrimental action by Film Victoria or its employees, are available The number and types of disclosures on Film Victoria’s website. referred by the public body to the Disclosures under the Protected Disclosure Act 2012 Ombudsman for investigation 00 (those made from 10 February 2013) The number and types of investigations taken over from the public body by the THE NUMBER OF ASSESSABLE Ombudsman 00 DISCLOSURES MADE TO FILM VICTORIA AND NOTIFIED TO IBAC FROM 2012–13 2011–12 The number of requests made by a 10 FEBRUARY–30 JUNE 2013 NUMBER NUMBER whistleblower to the Ombudsman to take over an investigation by the public body 00 Assessable disclosures 0N/A The number and types of disclosed ma ers that the public body has declined to investigate 00 The number and types of disclosed ma ers that were substantiated upon investigation and the action taken on completion of the investigation 00 Any recommendations made by the Ombudsman that relate to the public body: Recommendation regarding fi le security and management N/A N/A REPORT OF OPERATIONS / 25 Additional Information Available on Request FILM VICTORIA COMMITTEES In accordance with the requirements of the Standing Directions AND ASSESSMENT PANELS of the Minister for Finance, details in respect of the information items below have been retained by us and are available to the relevant Ministers, Members of Parliament and the public Audit and Risk Commi ee (subject to Freedom of Information requirements where This commi ee oversees and reviews the processes of Film Victoria applicable) on request. management and the internal and external audit function with a view to achieving strategic objectives effi ciently and eff ectively. In compliance with best practice disclosure policies and where It guides the Chief Executive Offi cer and the Head of Finance relevant, details about some of the following ma ers have been & Business Services and assists the organisation and the Minister disclosed in the Report of Operations: in the discharge of respective responsibilities for fi nancial performance, fi nancial reporting, compliance, internal control a. A statement that declarations of pecuniary interests have systems, audit activities, risk management and any other ma ers been duly completed by all relevant offi cers referred to it by the organisation. The commi ee also oversees b. Details of shares held by senior offi cers as nominee or and reviews the risks associated with the Cash Flow Facility fund held benefi cially in a statutory authority or subsidiary and assesses applications for the program for recommendation to the Board for fi nal approval. The Audit and Risk Commi ee c. Details of publications produced by us about our activities met on six occasions in 2012/13. All fi ve members are independent. and where they can be obtained d. Details of changes in prices, fees, charges, rates and levies / Jo Dawson, Board member (Chair) charged by us for services, including services that are / Debra Allanson, Board member administered / Lyn Maddock, Board member e. Details of any major external reviews carried out in respect of the operation of Film Victoria / Siu Ling Hui, external member f. Details of any other research and development activities / Jeremy King, external member. undertaken that are not otherwise covered either in the Report of Operations or in a document which contains the fi nancial Film Victoria Evaluation and Advisory report and Report of Operations Commi ee (EAC) g. Details of overseas visits undertaken including a summary This commi ee consists of suitably qualifi ed and experienced of the objectives and outcomes of each visit practitioners across fi lm and television. A minimum of fi ve members h. Details of major promotional, public relations and marketing are convened to consider applications for the Screen Production – activities undertaken to develop community awareness of Investment program, providing recommendations to the Board for our services fi nal approval. i. Details of assessments and measures undertaken to improve / CEO, Film Victoria (Chair) the occupational health and safety of employees, not otherwise / David Parker detailed in the Report of Operations / Jan Sardi j. A general statement on industrial relations within the organisation and details of time lost through industrial accidents and disputes, / Kate Dennis which is not otherwise detailed in the Report of Operations, and / Richard Frankland k. A list of major commi ees sponsored by Film Victoria, the purposes of each commi ee and the extent to which the / Jeni McMahon purposes have been achieved. / Andy Walker.

This information is available on request from: In the 2012/13 fi nancial year, former EAC members were engaged to consider applications where current serving members Head of Finance & Business Services declared confl icts of interest or were unavailable. These former Film Victoria members included: Level 3, 55 Collins Street Melbourne VIC 3000 / Ewan Burne / Gillian Carr / Steve Jodrell / Sue Maslin / Daniel Scharf.

The commi ee met on four occasions and assessed 35 applications, of which 27 were recommended to the Board for fi nal approval. 26 Digital Media Assessment Panel Fiction Feature Development Assessment Panel This panel assesses applications in respect of the Screen Marketing This panel assesses applications to the Screen Development – Games Release and Screen Development – Games funding strands, Fiction Features funding strand. The composition of the providing recommendations to the CEO or Board for fi nal approval. assessment panel comprises a minimum of one internal staff from the following: The panel must comprise of a minimum of two and maximum of three of the following: / CEO, Film Victoria

/ CEO, Film Victoria / Acting Head of Screen Industry Programs / Acting Head of Screen Industry Programs / Manager, Script Development. / Manager, Games, Digital Content and Animation The panel also includes a minimum of two and maximum of four external script development assessors. / Development and Investment Manager(s). External script development assessors engaged in the The panel also comprises external panel members, with relevant 2012/13 fi nancial year included: skills and experience. A minimum of three and maximum of fi ve of the following external members a end each meeting: / Ranald Allan / Ben Bri en Smith / Karin Altmann / Ma Di on (from November 2012) / Regina Lee / Dan Fill (Board member) / Stuart Page / Nick Hagger / Mira Robertson / Ma hew Hall / Greg Woodland.

/ Simon Joslin (from November 2012) The panel met on seven occasions and assessed 27 applications, / Cam Lee (until November 2012) of which 13 were approved. / Moran Paldi (until November 2012) Catapult Concept Lab Assessment Panel / Harry Ravenswood This panel assesses applications to the Catapult Concept / David Surman (from November 2012). Lab Special Initiative. The panel comprises:

The panel met on seven occasions and assessed 46 applications, / Manager, Script Development. of which 16 were recommended to the CEO or Board for fi nal approval and one application was deferred. A minimum of two and a maximum of fi ve external script development experts.

Fiction Television Development Assessment Panel External assessors engaged were: This panel assesses applications to the Co-Funded Television / Andy Cox funding strand. We may commission the external assessment of any project seeking funding to assist the panel in its / Mira Robertson. consideration of an application. The panel met once and assessed ten shortlisted applications The panel must comprise of a minimum of three of the following: of which fi ve were approved.

/ CEO, Film Victoria Documentary Development Assessment Panel / Acting Head of Screen Industry Programs This panel assesses applications to the Screen Development / Manager, Script Development Documentary funding strand. We may commission the external / Development and Investment Manager(s) assessment of any project seeking funding to assist the panel in its consideration of an application. / External assessors (as required). The panel must comprise of a minimum of three of the following: External assessors engaged to date in the 2012/13 fi nancial year included the following: / CEO, Film Victoria

/ Stuart Page. / Acting Head of Screen Industry Programs / Development and Investment Manager(s) The panel met on one occasion and assessed one application, which was approved. / Manager, Script Development / External assessors (as required).

The panel met on seven occasions and assessed 26 applications, of which 20 were approved. REPORT OF OPERATIONS / 27 Business and Skills Development Production Investment A raction Fund Assessment Panel (PIAF)/Regional Location A raction Fund This panel assesses applications to the International Festivals, (RLAF) commi ee Global Connections and International Fellowships funding strands. The commi ee meets as required. It also assesses our current Indigenous initiatives and other special initiative programs relevant to business and skills development Members: as required. / Jo Dawson, Board member (Chair) We may commission the external assessment of any project seeking funding to assist the panel in its consideration of an application. / Lyn Maddock, Board member (from December 2012) / Debra Allanson, Board member (from March 2013) Members (a minimum of three of the following): / Kim McGrath, Board member (until December 2012) / CEO, Film Victoria / CEO, Film Victoria / Acting Head of Screen Industry Programs / General Manager, Incentives, Locations & Production / Development and Investment Manager(s) Services (non-voting) (until March 2013) / Manager, Script Development / Acting Head of Screen Industry Programs (from March 2013) / Manager, Games, Digital Content and Animation / Head of Finance & Business Services (from December 2012) / Industry Programs Offi cer(s) / General Manager, Business Aff airs (until December 2012) / Indigenous Programs Offi cer. / A Film Victoria legal representative (voting member in the absence of CEO, Head of Screen Industry Programs, When considering applications for Global Connections a Head of Screen Industry Services or Head of Finance and minimum of one senior manager must be on the panel: Business Services) / Acting Head of Screen Industry Programs / Incentives Coordinator (non-voting) / Development and Investment Manager(s) / David Hanna, external member.

/ Manager, Script Development The Commi ee met on nine occasions and approved a total / Manager, Games, Digital Content and Animation. of 18 projects, 13 for PIAF and fi ve for RLAF.

When considering applications for one-off specifi c international markets or targeted business travel to a particular international event off ered through Global Connections, the panel must comprise a minimum of three internal staff from the following:

/ CEO, Film Victoria / Acting Head of Screen Industry Programs / General Manager, Incentives, Locations and Production Services (until March 2013) / Development and Investment Manager(s) / Manager, Script Development / Manager, Games, Digital Content and Animation.

The panel met on 27 occasions and assessed 49 applications, of which 45 were approved.

Industry and Audience Development Assessment Panel This panel assesses applications to the Industry Activities, Audience Access and Regional Access funding strands.

The panel must comprise of a minimum of three of the following:

/ CEO, Film Victoria / Acting Head of Screen Industry Programs / Development and Investment Manager(s) / Manager, Games, Digital Content and Animation / Industry Programs Offi cer.

The panel met on two occasions and assessed 11 applications, of which 11 were approved. 28 DISCLOSURE INDEX

The Annual Report of Film Victoria is prepared in accordance with all relevant Victorian legislations and pronouncements. This index has been prepared to facilitate identifi cation of Film Victoria’s compliance with statutory disclosure requirements.

LEGISLATION REQUIREMENT PAGE REFERENCE MINISTERIAL DIRECTIONS REPORT OF OPERATIONS – FINANCIAL REPORTING DIRECTIONS GUIDANCE Charter and purpose FRD 22C Manner of establishment and the relevant Ministers 2 FRD 22C Objectives, functions, powers and duties 1, 6 & 7 FRD 22C Nature and range of services provided 1

Management and structure FRD 22C Organisational structure 3

Financial and other information FRD 8B Budget portfolio outcomes 16 FRD 10 Disclosure index 28 FRD 12A Disclosure of major contracts 23 FRD 15B Executive offi cer disclosures 21 FRD 22C, SD 4.2(k) Operational and budgetary objectives and performance against objectives 16 FRD 22C Employment and conduct principles 19 FRD 22C Occupational health and safety policy 19 FRD 22C Summary of the fi nancial results for the year 18 FRD 22C Signifi cant changes in fi nancial position during the year 18 FRD 22C Major changes or factors aff ecting performance 16 FRD 22C Subsequent events 18 FRD 22C Application and operation of Freedom of Information Act 1982 23 FRD 22C Compliance with building and maintenance provisions of Building Act 1993 23 FRD 22C Statement on National Competition Policy 23 FRD 22C Application and operation of the Protected Disclosures Act 2012 23 & 24 (formerly the Whistleblowers Protection Act 2001) FRD 22C Details of consultancies over $10,000 22 FRD 22C Details of consultancies under $10,000 22 FRD 22C Statement of availability of other information 25 FRD 25A Victorian Industry Participation Policy disclosures 22 FRD 29 Workforce Data disclosures 20 SD 4.5.5 Risk management compliance a estation 19 SD 4.5.5.1 Ministerial Standing Direction 4.5.5.1 compliance a estation 19 SD 4.2(g) Specifi c information requirements 16 SD 4.2(j) Signoff requirements 16 DISCLOSURE INDEX / 29

LEGISLATION REQUIREMENT PAGE REFERENCE MINISTERIAL DIRECTIONS (CONTINUED) FINANCIAL REPORT Financial statements required under Part 7 of the Financial Management Act 1994 SD4.2(a) Statement of changes in equity 33 SD4.2(b) Operating statement 32 SD4.2(b) Balance sheet 33 SD4.2(b) Cash fl ow statement 34

Other requirements under Standing Direction 4.2 SD4.2(c) Compliance with Australian accounting standards and other authoritative pronouncements 35 SD4.2(c) Compliance with Ministerial Directions 16, 35 & 56 SD4.2(d) Rounding of amounts 36 SD4.2(c) Accountable offi cer’s declaration 16 SD4.2(f) Compliance with Model Financial Report 56

Other disclosures as required by Financial Reporting Directions in notes to the fi nancial statements FRD 9A Departmental disclosure of administered assets and liability by activity N/A FRD 11 Disclosure of ex gratia payments N/A FRD 13 Disclosure of parliamentary appropriations N/A FRD 21B Disclosures of responsible persons, executive offi cers and other personnel 54 (contractors with signifi cant management responsibilities) in the fi nancial report FRD 102 Inventories N/A FRD 103D Noncurrent physical assets 38 FRD 104 Foreign currency N/A FRD 106 Impairment of assets 38 FRD 109 Intangible assets N/A FRD 107 Investment properties N/A FRD 110 Cash fl ow statements 53 FRD 112C Defi ned benefi t superannuation obligations N/A FRD 113 Investments in subsidiaries, jointly controlled entities and associates N/A FRD 114A Financial Instruments – General government entities and public non fi nancial corporations 49 FRD 119 Contributions by owners 39

LEGISLATION Freedom of Information Act 1982 23 Building Act 1983 23 Protected Disclosures Act 2012 (formerly the Whistleblowers Protection Act 2001) 23 & 24 Victorian Industry Participation Policy Act 2003 22 Financial Management Act 1994 16 30 AUDITOR-GENERAL’S REPORT AUDITOR-GENERAL’S REPORT / 31 AUDITOR-GENERAL’S REPORT 32 FINANCIAL STATEMENTS

Comprehensive Operating Statement for the fi nancial year ended 30 June 2013

NOTE 2013 2012 $$ Continuing Operations Income from transactions Victorian Government funding 2(a) 15,317,163 17,541,463 Other income 2(b) 2,607,103 2,919,970 Total income from transactions 17,924,266 20,461,433

Expenses from transactions Program costs 2(c) 15,701,961 15,547,946 Employee expenses 2(d) 4,579,563 4,609,852 Depreciation and amortisation 2(e) 233,232 256,098 Other operating expenses 2(f) 2,046,848 2,175,438 Total expenses from transactions 22,561,604 22,589,334 Net results from transactions (net operating balance) (4,637,338) (2,127,902)

Other economic fl ows included in net result Net loss on non fi nancial assets 3(a) (28,528) (1,904) Net loss on fi nancial instruments 3(b) (386,279) 14,799 Net gain/(loss) from other economic fl ows 3(c) 5,059 31,984 Total other economic fl ows included in net result (409,748) 44,879 Comprehensive result (5,047,085) (2,083,022)

The comprehensive loss of $5,047,085 includes disbursement of program costs of $15,701,961. Revenue is allocated to various programs which results in fi nancial commitments to successful applicants. These commitments may remain undisbursed at the end of the fi nancial year due to contracted milestones or deliverables being outstanding a er contracts are executed. As a result, during one fi nancial year Film Victoria may make disbursements that arise from fi nancial commitments outstanding from previous years. The comprehensive operating statement should be read in conjunction with the accompanying notes included on pages 35 to 57. FINANCIAL STATEMENTS / 33

Balance Sheet as at 30 June 2013

NOTE 2013 2012 $$ Assets Financial assets Cash and cash deposits 14(a) 25,677,574 31,850,630 Receivables 4 1,121,166 457,729 Total fi nancial assets 26,798,741 32,308,359

Non-fi nancial assets Prepayments 4,192 41,627 Property, plant and equipment 5 1,617,939 202,901 Total non-fi nancial assets 1,622,131 244,528 Total assets 28,420,872 32,552,887

Liabilities Payables 6 132,400 80,853 Provisions 7 1,834,114 970,592 Total liabilities 1,966,514 1,051,445 Net assets 26,454,358 31,501,444

Equity Accumulated surplus/(defi cit) 9 (1,293,616) 3,753,469 Contributed capital 27,747,974 27,747,974 Net worth 26,454,358 31,501,443

Commitments on program costs undisbursed at 30 June 2013 total $17,692,606 and are detailed in Note 11. The balance sheet should be read in conjunction with the accompanying notes included on pages 35 to 57. Statement of Changes in Equity for the fi nancial year ended 30 June 2013

ACCUMULATED CONTRIBUTIONS NOTEDEFICIT BY OWNERS TOTAL $$$ Balance at 1 July 2011 5,836,491 27,747,974 33,584,465 Net result for the year (2,083,022) 0 (2,083,022) Other comprehensive income for the year 000

Balance as at 30 June 2012 3,753,469 27,747,974 31,501,443 Net result for the year (5,047,085) 0 (5,047,085) Other comprehensive income for the year 000

Balance as at 30 June 2013 9 (1,293,616) 27,747,974 26,454,358

The statement of changes in equity should be read in conjunction with the accompanying notes included on pages 35 to 57. 34 Cash fl ow statement for the fi nancial year ended 30 June 2013

NOTE 2013 2012 $$ Cash fl ows from operating activities Receipts Receipts from government 15,563,090 17,757,363 Receipts from other entities 703,039 2,200,035 Interest received 1,043,414 1,528,000 Goods and Services Tax recovered from the ATO 1,537,767 1,384,101 Total receipts 18,847,309 22,869,499

Payments Payments to suppliers and employees (5,921,019) (6,871,729) Payments to industry applicants (8,371,290) (9,549,539) Equity investment in new projects (8,837,658) (6,906,902) Producer package investment in new projects (123,600) (587,545) Total payments (23,253,567) (23,915,715) Net cash from/(used in) operating activities 14(b) (4,406,258) (1,046,216)

Cash fl ows from investing activities Cash Flow Facility – Producer Loans repayments 5,000 2,385,663 Payments for property, plant and equipment 5(b) (1,676,798) (4,289) Cash Flow Facility – Producer Loans advances (95,000) (45,445) Net cash from (used in) investing activities (1,766,798) 2,335,929

Net increase/(decrease) in cash held (6,173,056) 1,289,711

Cash and cash equivalents at the beginning of the fi nancial year 31,850,630 30,560,918

Cash and cash equivalents at the end of the fi nancial year 14(a) 25,677,574 31,850,630

The cash fl ow statement should be read in conjunction with the accompanying notes included on pages 35 to 57. FINANCIAL STATEMENTS / 35 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2013

Note 1: Summary of Signifi cant (c) Reporting entity Accounting Policies The fi nancial statements cover Film Victoria as an individual The annual fi nancial statements represent the audited general reporting entity. purpose fi nancial statements for Film Victoria for the period Its principal address is: ending 30 June 2013. The purpose of this report is to provide users with information about Film Victoria’s stewardship of Film Victoria resources entrusted to it. Level 3, 55 Collins Street Melbourne VIC3000 (a) Statement of compliance These general purpose fi nancial statements have been prepared Objectives and Funding in accordance with the Financial Management Act 1994 and Film Victoria is the state government body that provides strategic applicable Australian Accounting Standards (AAS), which leadership and assistance to the fi lm, television and games industries include Interpretations issued by the Australian Accounting in Victoria. Film Victoria is predominantly funded by accrual-based Standard Board (AASB). In particular, they are presented in parliamentary appropriations for the provision of outputs. a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector (d) Scope and presentation of fi nancial statements Financial Reporting. Comprehensive Operating Statement Income and expenses in the comprehensive operating statement Where appropriate, those AAS paragraphs applicable to not-for- are classifi ed according to whether or not they arise in ‘transactions’ profi t entities have been applied. or ‘other economic fl ows’. This classifi cation is consistent with the whole of government reporting format and is allowed under AASB Accounting policies are selected and applied in a manner which 101 Presentation of Financial Statements. ensures that the resulting fi nancial information satisfi es the concepts of relevance and reliability, thereby ensuring that the substance of ‘Transactions’ and ‘other economic fl ows’ are defi ned by Australian the underlying transactions or other events is reported. System of Government Finance Statistics: Concepts, Sources and Methods 2005 and Amendments to Australian System of Government The annual fi nancial statements have been authorised for issue Finance Statistics, 2005 (ABS Catalogue Cat. No. 5514.0). by the Board of Film Victoria on 26 August 2013. ‘Transactions’ are those economic fl ows that are considered to arise (b) Basis of accounting preparation and measurement as a result of policy decisions, usually interactions between two The accrual basis of accounting has been applied in the preparation entities by mutual agreement. Transactions also include fl ows in of these fi nancial statements whereby assets, liabilities, equity, an entity, such as depreciation where the owner is simultaneously income and expenses are recognised in the reporting period to acting as the owner of the depreciating asset and as consumer of which they relate, regardless of when cash is received or paid. the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Judgements, estimates and assumptions are required to be made Transactions can be in kind (e.g. assets provided given free of charge about the carrying values of assets and liabilities that are not or for nominal consideration) or where the fi nal consideration is cash. readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from ‘Other economic fl ows’ are changes in the volume or changes historical experience and various other factors that are believed arising from market re-measurements. They include: to be reasonable under the circumstances. Actual results may diff er from these estimates. / Gains and losses from disposals / Revaluations and impairments of non-fi nancial physical Revisions to accounting estimates are recognised in the period in and intangible assets which the estimate is revised and also in future periods that are aff ected by the revision. Judgements and assumptions made / Fair value changes of fi nancial instruments assets. by management in the application of AASs that have signifi cant The net result is equivalent to profi t or loss derived in accordance eff ects on the fi nancial statements and estimates relate to: with AASs. / Plant and equipment / Impairment on receivables / Provisions. These fi nancial statements are presented in Australian dollars, and are prepared in accordance with the historical cost convention. 36 Balance Sheet Administration fees Assets and liabilities are presented in liquidity order with assets Administration fees are charged by Film Victoria for production aggregated in fi nancial assets and non-fi nancial assets. investment funding and are based on the amount of Film Victoria’s investment. Current and non-current assets and liabilities (non-current being those assets or liabilities expected to be recovered or se led in Investment and grant repayments more than 12 months a er the reporting) are disclosed in the notes, where relevant. Investment and grant repayments are income investment returns from funded recipients recognised in the reporting period in Cash Flow Statement which they are received. Cash fl ows are classifi ed according to whether or not they arise from operating, investing, or fi nancing activities. This classifi cation (f) Expenses from transactions is consistent with requirements under AASB 107 Statement of Expenses from transactions are recognised as they are incurred, Cash Flows. and reported in the fi nancial year to which they relate.

Statement of Changes in Equity Program Costs The statement of changes in equity presents reconciliations of These expenses are related to payments made to approved funding non-owner and owner changes in equity from opening balance at recipients for grants, advances and production investment. the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due Employee Expenses to amounts recognised in the ‘Comprehensive result’ and amounts Salary costs recognised in ‘Other economic fl ows – other movements in equity’ related to ‘Transactions with owner in its capacity as owner’. Refer to the section in Note 1 (k) regarding employee benefi ts.

Rounding These expenses include all costs related to employment (other than Amounts in the fi nancial statements (including the notes) superannuation which is accounted for separately) including wages have been rounded to the nearest dollar, unless otherwise and salaries, fringe benefi ts tax, leave entitlements, redundancy stated. Figures in the fi nancial statements may not equate payments and WorkCover premiums. due to rounding. Superannuation (e) Income from transactions All superannuation contributions are expensed in the Income is recognised to the extent that it is probable that the Comprehensive Operating Statement. A total of $367,379 was economic benefi ts will fl ow to the entity and the income can contributed to a number of superannuation funds in 2012/13. be reliably measured. Superannuation contributions in 2011/12 were $451,161.

Victorian Government Funding Depreciation and Amortisation All plant and equipment and other non-fi nancial physical assets Output appropriations (excluding items under operating leases and assets held-for-sale) Income from the outputs Film Victoria provides to Government that have fi nite useful life are depreciated. Depreciation is generally is recognised when those outputs have been delivered and calculated on a straight-line basis, at rates that allocate the asset’s the relevant Minister has certifi ed delivery of those outputs value, less any estimated residual value, over its estimated useful life. in accordance with specifi ed performance criteria. The estimated useful lives, residual values and depreciation Other Income method are reviewed at the end of each annual reporting period, Amounts disclosed as income are, where applicable, net of returns, and adjustments made where appropriate. allowances and duties and taxes. Income is recognised for each of Film Victoria’s major activities as follows: The following estimated useful lives are used in the calculation of depreciation and amortisation: / Other income including interest CLASS OF FIXED ASSET RATE 2013 RATE 2012 / Income from project assistance, producer advances, and the sale of rights is recognised upon delivery Audio visual equipment 25% 25% of the service or rights to the customer. Computer equipment 33.33% 33.33% Interest revenue Furniture and fi ings 20% 20% Interest includes interest received on deposits and other Offi ce equipment 20% 20% investments and the unwinding over time of the discount on fi nancial Leasehold amortised over amortised over assets. Interest income is recognised using the eff ective interest improvements the life of the the life of the method which allocates the interest over the relevant period. lease of ten lease of fi ve Net realised and unrealised gains and losses on the revaluation years years of investments do not form part of the income from transactions, but are reported as part of income from other economic fl ows in Other Operating Expenses the net result or as unrealised gains and losses taken directly Refer to the section in Note 1 (l) regarding Leases. to equity, forming part of the total change in net worth in the comprehensive result. Supplies and services Supplies and services costs are recognised as an expense in the Development buyouts reporting period in which they are incurred. Development buyouts are the repayment of Film Victoria’s development investment (plus premium, if applicable) and, Bad and doubtful debts once repaid, allow for the reassignment of Film Victoria’s (Refer Note 1 (i) Financial assets – Impairment of fi nancial assets). copyright interest in the project to the funding recipient. FINANCIAL STATEMENTS / 37 (g) Other economic fl ows included in net result (i) Financial Assets Other economic fl ows measure the change in volume or value Cash and Cash Deposits of assets or liabilities that do not result from transactions. Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and highly liquid investments Net gain/(loss) on non-fi nancial assets with an original maturity of three months or less, which are held Net gain/(loss) on non-fi nancial assets and liabilities includes for the purpose of meeting short term cash commitments rather realised and unrealised gains and losses as follows: than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignifi cant risk of changes in value. Disposal of non-fi nancial assets Any gain or loss on the disposal of non-fi nancial assets is recognised Receivables at the date of disposal and is determined a er deducting from the Receivables consist of: proceeds the carrying value of the asset at that time. / Contractual receivables, which include mainly debtors in relation Net gain/(loss) on fi nancial instruments to goods and services, loans to third parties and accrued investment income Net gain/(loss) on fi nancial instruments includes: / Statutory receivables, which include predominantly amounts / Realised and unrealised gains and losses from revaluations owing from the Victorian Government and GST input credits of fi nancial instruments at fair value recoverable. Receivables that are contractual are classifi ed as / Impairment and reversal of impairment for fi nancial instruments fi nancial instruments. at amortised cost Contractual receivables are classifi ed as fi nancial instruments / Disposals of fi nancial assets. and categorised as loans and receivables (refer to Note 1 (h) Financial Instruments for recognition and measurement). Statutory Other gains (losses) from other economic fl ows receivables, are recognised and measured similarly to contractual receivables (except for impairment), but are not classifi ed as fi nancial Other gains/(losses) from other economic fl ows include the gains instruments because they do not arise from a contract. or losses from: Receivables are subject to impairment testing as described below. / Revaluation of the present value of the long service liability A provision for doubtful receivables is recognised when there is due to changes in the bond interest rates objective evidence that the debts may not be collected, and bad / Transfer of amounts from reserves and/or accumulated surplus to debts are wri en off when identifi ed. the net result due to disposal or derecognition or reclassifi cation. Investment Loans and Other Financial Assets Film Victoria classifi es its fi nancial assets in the following categories: (h) Financial instruments Financial instruments arise out of contractual agreements that give / Financial assets at fair value through profi t and loss rise to a fi nancial asset of one entity and a fi nancial liability or equity / Loans and receivables instrument of another entity. Due to the nature of Film Victoria’s activities, certain fi nancial assets and fi nancial liabilities arise under / Held to maturity investments. statute rather than a contract. Such fi nancial assets and fi nancial liabilities do not meet the defi nition of fi nancial instruments in The classifi cation depends on the purpose for which the assets were AASB 132 Financial Instruments: Presentation. For example statutory acquired. Management determines the classifi cation of its fi nancial receivables arising from taxes do not meet the defi nition of fi nancial assets at initial recognition. instruments as they do not arise under contract. However, Cash Flow Film Victoria assesses at balance sheet date whether a fi nancial Facility Loans to producers are fi nancial instruments as they arise asset or group of fi nancial assets is impaired. out of contractual agreements. Cash Flow Facility – Producer Loans Where relevant, for note disclosure purposes, a distinction is made The Film Victoria Cash Flow Facility is a revolving fi nancial facility between those fi nancial assets and liabilities that meet the defi nition which complements Film Victoria’s programs by providing loans to of fi nancial instruments in accordance with AASB 132 and those that fi nance the Australian Taxation Offi ce (ATO) producer off set and do not. pre-sales by way of broadcast licenses and distribution guarantees. Categories of Non-Derivative Financial Instruments The Cash Flow Facility provides fi nancial support for the industry by underpinning private sector participation and assisting local Loans and receivables producers in international fi nancing and fi nancing of the producer Loans and receivables are fi nancial instrument assets with fi xed off set. It also leverages increased production in Victoria. determinable payments that are not quoted on the active market. These assets are initially recognised at fair value plus any directly Cash Flow Facility advances to producers are a loan secured a ributable transaction costs. Subsequent to initial measurement, by executed distribution contracts, pre-sale agreements or the loans and receivables are measured at amortised cost using the producer off set. Loans are secured by relevant guarantees and eff ective interest method less any impairment. Personal Property Securities Register charges. Interest is charged on amounts outstanding until fully repaid and recorded as revenue. Loans and receivables category includes cash and deposits, trade receivables, term deposits, loans and other receivables, but not A provision for doubtful debts is recognised when collection of statutory receivables. the full nominal amount is no longer probable. (See Note 1 (i) Financial assets – Impairment of fi nancial assets.) 38 Equity Investments and Advances (k) Liabilities Production investment is an equity investment made directly to screen projects and the amount of Film Victoria’s investment is Payables wri en off in the period of payment. This type of investment is Payables consist of: recouped by the organisation as the success of the project allows / Contractual payables, including items such as accounts payable over a timeframe set in accordance with Film Victoria’s copyright and unearned income including deferred income from concession reversion policy. This policy means that Film Victoria’s entitlement notes. Accounts payable represent liabilities for goods and to recoup ceases fi ve years a er the fi rst commercial release. services provided to Film Victoria prior to the end of the fi nancial Under certain programs Film Victoria makes advances, for example year that are unpaid, and arise when Film Victoria becomes to production companies towards specifi ed projects and agreed obliged to make future payments in respect of the purchase business costs. These are wri en off in the period of payment. of those goods and services Advances may be repaid to Film Victoria upon projects completing / Statutory payables, such as goods and services tax and fringe certain stages for example, the relevant production company benefi ts tax payables. commencing principal photography. The repayment period will diff er from case to case, depending on when projects are produced. Contractual payables are classifi ed as fi nancial instruments and categorised as fi nancial liabilities at amortised costs (refer to Note Impairment of Financial Assets 1 (h)). Statutory payables are recognised and measured similarly to At the end of each reporting period, Film Victoria assesses whether contractual payables, but are not classifi ed as fi nancial instruments there is objective evidence that a fi nancial asset or group of fi nancial and not included in the category of fi nancial liabilities at amortised assets is impaired. Objective evidence includes fi nancial diffi culties cost, because they do not arise from a contract. of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. All fi nancial Provisions instrument assets, except those measured at fair value through Provisions are recognised when Film Victoria has a present profi t and loss, are subject to annual review for impairment. obligation, the future sacrifi ce of economic benefi ts is probable, and the amount of the provision can be measured reliably. Receivables are assessed for bad and doubtful debts on a regular basis. Those bad debts considered as wri en off by mutual consent The amount recognised as a liability is the best estimate of the are classifi ed as a transaction expense. Bad debts not wri en off consideration required to se le the present obligation at reporting by mutual consent and the allowance for doubtful receivables are date, taking into account the risks and uncertainties surrounding classifi ed as other economic fl ows in the net result. the obligation. Where a provision is measured using the cash fl ows estimated to se le the present obligation, its carrying amount is the The amount of the allowance is the diff erence between the fi nancial present value of those cash fl ows, using discount rate that refl ects asset’s carrying amount and the present value of estimated future the time value of money and risks specifi c to the provision. cash fl ows, discounted at the eff ective interest rate. When some or all of the economic benefi ts required to se le In assessing impairment of statutory (non contractual) fi nancial a provision are expected to be received from a third party, the assets which are not fi nancial instruments, professional judgement receivable is recognised as an asset if it is virtually certain that is applied in assessing materiality and using estimates, averages recovery will be received and the amount of the receivable can and other computational methods in accordance with AASB 136 be measured reliably. Impairment of Assets. (i) Employee benefi ts (j) Non-fi nancial assets Provision is made for benefi ts accruing to employees in respect of Property, Plant and Equipment wages and salaries, annual leave and long service leave for services All non-fi nancial physical assets are measured initially at cost and rendered to the reporting date. subsequently measured at amounts equal to the fair value less accumulated depreciation and impairment. (a) Wages and salaries, annual leave and sick leave Liabilities for wages and salaries and annual leave are recognised in The fair value of plant and equipment is normally determined by the provision for employee benefi ts, classifi ed as current liabilities. reference to the asset’s depreciated replacement cost. For plant Those liabilities which are expected to be se led within 12 months and equipment, existing depreciated historical cost is generally of the reporting period, are measured at their nominal value. Those a reasonable proxy for depreciated replacement cost because of liabilities that are not expected to be se led within 12 months are the short lives of the assets concerned. also recognised in the provision for employee benefi ts as current liabilities, but are measured at present value of the amounts Leasehold Improvements expected to be paid when the liabilities are se led using the The cost of a leasehold improvement is capitalised as an asset and remuneration rate expected to apply at the time of se lement. depreciated over the remaining term of the lease or the estimated useful life of the improvement, whichever is the shorter.

Other Non-Financial Assets Prepayments Other non-fi nancial assets include prepayments which represent payments in advance of receipt of goods or services or that are part of expenditure made in one accounting period covering a term extending beyond that period. FINANCIAL STATEMENTS / 39 (b) Long service leave (m) Equity Liability for long service leave (LSL) is recognised in the provision for employee benefi ts. Contributions by Owners Additions to net assets which have been designated as contributions Unconditional LSL is disclosed in the notes to the fi nancial by owners are recognised as contributed capital. Other transfers statements as a current liability even where Film Victoria does that are in the nature of contributions or distributions have also not expect to se le the liability within 12 months because it will been designated as contributions by owners. not have the unconditional right to defer the se lement of the entitlement should an employee take leave within 12 months. (n) Commitments Commitments for future expenditure include operating The components of this current LSL liability are measured at: commitments arising from contracts. These commitments are disclosed by way of note (refer Note 11) at their nominal value and / Nominal value-component that Film Victoria expects inclusive of the goods and services tax (GST) payable. In addition, to se le within 12 months where it is considered appropriate and provides additional relevant / Present value-component that Film Victoria does not information to users, the net present value of signifi cant individual expect to se le within 12 months. projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the Conditional LSL is disclosed as a non-current liability. There is balance sheet. an unconditional right to defer the se lement of the entitlement until the employee has completed the requisite years of service. (0) Accounting for the Goods and Services Tax (GST) This non-current LSL liability is measured at present value. Income, expenses and assets are recognised net of the amount of Any gain or loss following revaluation of the present value of associated GST, unless the GST incurred is not recoverable from non-current LSL liability is recognised as a transaction, except the taxation authority. In this case, it is recognised as part of the to the extent that a gain or loss arises due to changes in bond cost of acquisition of the asset or as part of the expense. interest rates for which it is then recognised as an’ other Receivables and payables are stated inclusive of the amount economic fl ow’. of GST receivable or payable. The net amount of GST recoverable (c) Employee benefi ts on-costs from, or payable to, the taxation authority is included with other Employee benefi ts on-costs such as payroll tax, workers receivables or payables in the balance sheet. compensation and superannuation are recognised separately Cash fl ows are presented on a gross basis. The GST component from the provision for employee benefi ts. of cash fl ows arising from investing or fi nancing activities which (l) Leases are recoverable from, or payable to, the taxation authority, are presented as operating cash fl ows. A lease is a right to use an asset for an agreed period of time in exchange for payment. Commitments are stated inclusive of GST (refer Note 1 (n)). Leases are classifi ed at their inception as either operating or (p) Australian Accounting Standards issued that fi nance leases based on the economic substance of the agreement are not yet eff ective so as to refl ect the risks and rewards incidental to ownership. Film Victoria has adopted all the new and revised Australian Leases of infrastructure, property, plant and equipment are Accounting Standards and interpretations issued by the Australian classifi ed as fi nance infrastructure leases whenever the terms Accounting Standards Board (AASB) that are relevant to its of the lease transfer substantially all the risks and rewards operations and eff ective for reporting from 1 July 2012. of ownership from the lessor to the lessee. All other leases are classifi ed as operating leases. Management has given due consideration to new and revised Operating Leases standards and interpretations issued by AASB that are not yet Operating lease payments, including any contingent rentals, are eff ective and do not believe they will have any material fi nancial recognised as an expense in the comprehensive operating statement impact on the fi nancial statements. on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pa ern of the benefi ts derived from the use of the leased asset. The leased asset is not recognised in the balance sheet. 40 The below table shows the new and revised accounting standards (including amending standards) that are mandatory for the full year ending 30 June 2013.

APPLICABLE FOR ANNUAL REPORTING PERIODS IMPACT ON PUBLIC SECTOR STANDARD SUMMARY BEGINNING ON AGENCY FINANCIAL STATEMENTS AASB 9 – This standard simplifi es requirements for the 1 January 2015 Subject to AASB’s further Financial classifi cation and measurement of fi nancial assets modifi cations to AASB 9, together Instruments resulting from Phase 1 of the IASB’s project to with the anticipated changes replace IAS 39 Financial Instruments: Recognition resulting from the staged projects on and Measurement (AASB 139 Financial Instruments: impairments and hedge accounting, Recognition and Measurement). details of impacts will be assessed. AASB 13 – This Standard outlines the requirements for measuring 1 January 2013 Disclosure for fair value Fair Value the fair value of assets and liabilities and replaces the measurements using unobservable Measurement existing fair value defi nition and guidance in other inputs are relatively detailed Australian accounting standards. AASB 13 includes a compared to disclosure for ‘fair value hierarchy’ which ranks the valuation technique fair value measurements using inputs into three levels using unadjusted quoted prices observable inputs. Consequently, in active markets for identical assets or liabilities; other the Standard may increase the observable inputs; and unobservable inputs. disclosures required for assets measured using depreciated replacement cost. AASB 1053 – This Standard establishes a diff erential fi nancial 1 July 2013 The Victorian Government is Appplication of reporting framework consisting of two tiers of reporting currently considering the impacts Tiers of Australian requirements for preparing general purpose fi nancial of Reduced Disclosure Requirements Accounting statements. (RDRs) for certain public sector Standards entities, and has not decided if RDRs will be implemented in the Victorian Public Sector. FINANCIAL STATEMENTS / 41 Note 2: Net Result from Operations

2013 2012 $$ INCOME FROM TRANSACTIONS (a) Income from Government Government funding Government funding for continuing operations 15,317,163 17,541,463 Total government funding 15,317,163 17,541,463

(b) Other income Program revenue Development buyout 295,230 682,156 Administration fees 203,577 157,353 Investment and grants repayments 1,078,302 558,442 Total program revenue 1,577,109 1,397,951

Interest revenue Interest/fi nancial institutions 955,424 1,345,897 Interest/production advances 351 93,794 Interest and premiums on development and production 74,219 82,328 Total interest revenue 1,029,994 1,522,019 Total other income 2,607,103 2,919,970

EXPENSES FROM TRANSACTIONS (c) Program costs Program payments 15,701,961 15,547,946 Total program costs 15,701,961 15,547,946

(d) Employee expenses Post employment benefi ts Superannuation 367,379 451,161 Salary costs 4,212,184 4,158,692 Total employee expenses 4,579,563 4,609,853

(e) Depreciation and amortisation Depreciation of non-current assets 61,645 101,698 Amortisation of non-current assets 171,587 154,400 Total depreciation and amortisation 233,232 256,098

(f) Other operating expenses Operating leases 423,944 421,466 Supplies and services 1,622,903 1,753,972 Total operating expenses 2,046,848 2,175,439

42 Note 3: Other Economic Flows included in Net Result

2013 2012 $$ (a) Net gain/(loss) on non-fi nancial assets Net loss on disposal of non-fi nancial assets (28,528) (1,904) Total net gain/(loss) on non-fi nancial assets (28,528) (1,904)

(b) Net gain/(loss) on fi nancial instruments Impairment on fi nancial instruments (See Note 13 (f)) (386,279) 14,799 Total net gain/(loss) on fi nancial instruments (386,279) 14,799

(c) Other gain/(loss) from other economic fl ows Net gain/(loss) arising from revaluation of long service leave liability 5,059 31,984 Net gain/(loss) arising from revaluation of long service leave liability 5,059 31,984

Note 4: Receivables

NOTE 2013 2012 $$ CURRENT RECEIVABLES Contractual Cash Flow Facility – Producer Loans 95,000 0 Other receivables(i) 997,190 0 Interest receivable 28,977 42,397 Total current contractual receivables 1,121,167 42,397

Statutory GST receivable 024,053 Total current statutory receivables 0 24,053

NON-CURRENT RECEIVABLES Contractual Cash Flow Facility – Producer Loans 509,135 514,135 Cash Flow Facility – impairment allowance 13(d) (509,135) (122,856) Total non-current receivables 0 391,279 Total receivables 1,121,167 457,729

(i) The average credit period on sales of goods and services is 30 days. An allowance has been made for estimated irrecoverable amounts from the sale of goods and services, determined by reference to past default experience. FINANCIAL STATEMENTS / 43 This table summarises the amount of Cash Flow Facility – Producer Loan advances paid out and principal repayments received during the reporting period.

2013 2012 $$ Cash Flow Facility – Producer Loans at cost Opening balance 514,135 2,854,353 Add: Further loan advances 95,000 45,445 609,135 2,899,798 Less: Loan principal repayments (5,000) (2,385,663) Closing balance (before impairment allowance) 604,135 514,135

Current Cash Flow Facility Producer Loans due within 12 months 95,000 0 Non-current Cash Flow Facility Producer Loans due a er 12 months 509,135 514,135 Total Cash Flow Facility Producer Loans (before impairment allowance) 604,135 514,135

2013 2012 $$ Movement in the allowance account for impairment of Cash Flow Facility Producer Loans Balance at beginning of year 122,856 137,655 Movement in impairment provision for Cash Flow Facility Producer Loans 386,279 (14,799) Balance at end of year 509,135 122,856

Details of the impairment in Producer Loans are included in Note 13 Financial Instruments. 44 Note 5: Property, Plant and Equipment (a) Property, plant and equipment at cost less accumulated depreciation or amortisation

2013 2012 $$ Leasehold improvements At fair value 1,473,335 1,212,408 Less: Accumulated depreciation (50,865) (1,090,808) Total leasehold improvements 1,422,470 121,600

Audio visual equipment At fair value 37,493 59,343 Less: Accumulated depreciation (16,348) (45,207) Total audio visual equipment 21,145 14,136

Computer equipment At fair value 111,328 420,368 Less: Accumulated depreciation (41,593) (375,014) Total computer equipment 69,735 45,354

Furniture and fi  ings At fair value 110,261 217,821 Less: Accumulated depreciation (19,842) (197,628) Total furniture and fi  ings 90,420 20,193

Offi ce equipment At fair value 26,771 37,070 Less: Accumulated depreciation (12,601) (35,452) Total offi ce equipment 14,171 1,618 Total property, plant and equipment 1,617,939 202,901 FINANCIAL STATEMENTS / 45 (b) Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current fi nancial period are set out below

LEASEHOLD AUDIO VISUAL COMPUTER FURNITURE OFFICE IMPROVEMENTS EQUIPMENT AT EQUIPMENT AT AND FITTINGS EQUIPMENT AT AT FAIR VALUE FAIR VALUE FAIR VALUE AT FAIR VALUE FAIR VALUE TOTAL $$$$$$ Balance as at 1 July 2012 121,600 14,136 45,354 20,193 1,618 202,901 Additions 1,473,335 14,520 77,908 96,691 14,344 1,676,798 Disposals (1,212,408) (36,370) (386,949) (204,251) (24,644) (1,864,621) Accumulated depreciation on disposals 1,211,530 33,943 366,411 199,567 24,644 1,836,093 Depreciation expense (171,587) (5,084) (32,990) (21,780) (1,792) (233,232) Asset impairment 000000 Balance at 30 June 2013 1,422,470 21,145 69,735 90,420 14,171 1,617,939

LEASEHOLD AUDIO VISUAL COMPUTER FURNITURE OFFICE IMPROVEMENTS EQUIPMENT AT EQUIPMENT AT AND FITTINGS EQUIPMENT AT AT FAIR VALUE FAIR VALUE FAIR VALUE AT FAIR VALUE FAIR VALUE TOTAL $$$$$$ Balance as at 1 July 2011 276,000 17,330 117,586 43,027 2,670 456,613 Additions 0 3,747 0 694 0 4,441 Disposals 0 (2,999) (26,603) 0 0 (29,602) Accumulated depreciation on disposals 0 1,095 26,452 0 0 27,547 Depreciation expense (154,400) (5,037) (72,080) (23,528) (1,052) (256,098) Asset impairment 000000 Balance at 30 June 2012 121,600 14,136 45,354 20,193 1,618 202,901

Note 6: Payables

2013 2012 $$ Current payables Contractual Supplies and services 60,312 80,853 Total contractual payables 60,312 80,853

Statutory GST payable 72,088 0 Total statutory payables 72,088 0 Total current payables 132,400 80,853 Total payables 132,400 80,853 46 Note 7: Provisions

2013 2012 $$ Current provisions Employee benefi ts – annual leave Unconditional and expected to be se led within 12 months 288,407 308,877 Unconditional and expected to be se led a er 12 months 0 0

Employee benefi ts – long service leave Unconditional and expected to be se led within 12 months 49,247 56,523 Unconditional and expected to be se led a er 12 months 103,176 133,175 Provision for Voluntary Departure Package 65,692 0 Total current provisions 506,522 498,575

Non-current provisions Employee benefi ts 184,111 192,050 Leasehold dismantling costs 280,000 279,967 Building incentive 863,482 0 Total non-current provisions 1,327,593 472,017 Total provisions 1,834,115 970,592

(a) Employee benefi ts and related on-costs

2013 2012 $$ Current employee benefi ts Annual leave 272,339 291,668 Long service leave entitlements 143,430 178,506

Non-current employee benefi ts Long service leave entitlements 173,248 180,719 Total employee benefi ts 589,017 650,893

Current on-costs Annual leave 16,068 17,208 Long service leave 8,993 11,192 Non-current on-costs – long service leave 10,863 11,331 Voluntary Departure Package 65,692 0 Total on-costs 101,615 39,732 Total employee benefi ts and related on-costs 690,632 690,625 FINANCIAL STATEMENTS / 47 (b) Movement in provision for leasehold dismantling costs

2013 2012 $$ Opening balance 279,967 279,967 Additional provisions recognised 280,000 0 Provisions derecognised (279,967) 0 Closing balance 280,000 279,967

Additional provision recognised for new leasehold property at 55 Collins Street, Melbourne.

(c) Movement in the provision for the building incentive

2013 2012 $$ Opening balance 0 0 Additional provisions recognised 894,271 0 Provision wri en back for lease period year to date (30,789) 0 Closing balance 863,482 0

Building incentive provision for new leasehold property at 55 Collins Street Melbourne recognised in accordance with AASB Interpretation 115. Note 8: Superannuation Film Victoria has made employer contributions on behalf of its employees during 2012/13 to the following defi ned contribution plans: VicSuper Employer contributions paid to the VicSuper scheme in 2012/13 amount to $230,247 (2011/12 $276,548). Contributions outstanding as at 30 June 2013 were nil. Other Employer contributions paid to other various schemes in 2012/13 amount to $137,132 (2011/12 $174,612). Contributions outstanding as at 30 June 2013 were nil.

Film Victoria recognises all superannuation contributions for the reporting period as expense, included as part of the employee benefi ts in the Comprehensive Operating Statement.

Note 9: Accumulated Defi cit The accumulated defi cit as at 30 June 2013 totals $1,293,616. (2011/12 accumulated surplus of $3,753,469).

Note 10: Leases Operating leases are with respect to offi ce space at Level 3, 55 Collins Street, Melbourne and minor related offi ce equipment.

2013 2012 $$ Non-cancellable operating leases payable Not later than one year 475,719 209,113 Longer than one year and not longer than fi ve years 1,518,303 8,040 Longer than fi ve years 3,407,137 0 Present value of minimum lease payments 5,401,159 217,153 48 Note 11: Commitments for Expenditure (a) Programs and Cash Flow Facility – Producer Loans The balance of Film Victoria’s commitments which were not disbursed in this twelve month period amounted to $17,692,606 (2012: $20,298,110). These commitments become payable when contracts are executed and upon contractees satisfying certain conditions. Payments of these commitments are expected to be made within fi ve years of the balance sheet date. Commitments are stated inclusive of the Goods and Services Tax (GST) payable.

The balance of outstanding commitments includes amounts funded by future year budget allocations.

Cash analysed by funding and usage 2012/13 OUTSTANDING COMMITMENTS CASH AS AT AS AT BALANCE AS AT 30-JUN-13 30-JUN-13 30-JUN-13 $$$ Cash Flow Facility available 12,895,865 7,588 12,888,277 Film Victoria programs (including digital media) 12,781,709 17,685,018 (4,903,309) Total cash assets 25,677,574 17,692,606 7,984,968

Cash analysed by funding and usage 2011/12 OUTSTANDING COMMITMENTS CASH AS AT AS AT BALANCE AS AT 30-JUN-12 30-JUN-12 30-JUN-12 $$$ Cash Flow Facility available 14,485,865 102,588 14,383,277 Film Victoria programs (including digital media) 17,364,765 20,195,522 (2,830,757) Total cash assets 31,850,630 20,298,110 11,552,520

Cash Flow Facility – Producer Loans 2013 2012 $$ Total funding for Cash Flow Facility 15,000,000 15,000,000 Less: Total loans outstanding (before impairment allowance) (604,135) (514,135) Cash Flow Facility cash held 14,395,865 14,485,865 Less: Cash Flow Facility commi ed not yet paid (7,588) (102,588) Less: transfer to Film Victoria programs (1,500,000) 0 Cash Flow Facility available 12,888,277 14,383,277

The Cash Flow Facility represents a revolving loan facility. Film Victoria has a stringent credit process to ensure that all loans are prudently managed. Film Victoria programs comprise grants provided for industry, investment and support. It also includes repayments and recoupments from prior year projects. The balance at 30 June 2013 is commi ed to fi lm industry initiatives, programs and expenditure carried forward into future periods. FINANCIAL STATEMENTS / 49 Note 12: Contingent Liabilities and Contingent Assets There were no contingent liabilities or contingent assets at the reporting date.

Note 13: Financial Instruments (a) Financial risk management objectives Film Victoria’s activities expose it primarily to the fi nancial risks of changes in interest rates, credit exposure and a minor amount of operational foreign currency transactions. Film Victoria does not enter into derivative fi nancial instruments to manage its exposure to interest rate and foreign currency risk.

Film Victoria does not enter into or trade fi nancial instruments, including derivative fi nancial instruments, for speculative purposes.

Categorisation of fi nancial instruments CATEGORY 2013 2012 $ $ Financial assets Contractual fi nancial assets – loans and receivables at amortised cost or fair value through profi t and loss Cash and deposits 25,677,574 31,850,630 Receivables 1,121,166 433,676 Total fi nancial assets 26,798,740 32,284,306

Financial liabilities Payables Contractual fi nancial liabilities at amortised cost 60,312 80,853 Total fi nancial liabilities 60,312 80,853

Net holding gain/(loss) on fi nancial instruments by category 2013 2012 $$ Financial assets Cash and deposits 955,424 1,345,897 Trade and other receivables 0 0 Cash Flow Facility Producer Loans – interest 351 93,794 Cash Flow Facility Producer Loans – admin fees 10,512 35,855 Cash Flow Facility Producer Loans – impairment (509,135) (122,856) Total fi nancial assets 457,152 1,352,690

Financial liabilities Other payables 0 0 Total fi nancial liabilities 0 0

At 30 June 2013 an impairment allowance of $509,135 was made against Cash Flow Facility Producer Loans. In determining the amount of an impairment allowance, Film Victoria takes into account the likelihood of the timing and amounts of payments by a producer and, where relevant, by any producer associated distribution company. See also Note 13 (d). 50 (b) Signifi cant accounting policies Film Victoria’s accounting policies including terms and conditions of each class of fi nancial asset and fi nancial liability recognised at balance date, are stated in Note 1. (c) Interest rate risk Film Victoria’s exposure to interest rate risks and the eff ective interest rate risks of fi nancial assets and fi nancial liabilities recognised at balance date are as follows:

The following table details Film Victoria’s exposure to interest rate risks as at 30 June 2013 WEIGHTED AVERAGE EFFECTIVE VARIABLE FIXED NON-INTEREST CARRYING INTEREST RATE INTEREST RATE INTEREST RATE BEARING AMOUNT $ $ $ $ Financial assets Cash and deposits Cash on hand and cash at bank 2.62% 632,774 0 800 633,574 Short term/at call deposits 2.81% 0 25,044,000 0 25,044,000

Receivables Cash Flow Facility – Producer Loans 3.56%–8.50% 0 95,000 0 95,000 Other receivables (excluding prepayments) N/A 0 0 1,026,166 1,026,166 Total fi nancial assets 632,774 25,139,000 1,026,966 26,798,740

Financial liabilities Payables Other payables N/A 0 0 132,400 132,400 Total fi nancial liabilities 0 0 132,400 132,400

The following table details Film Victoria’s exposure to interest rate risks as at 30 June 2012 WEIGHTED AVERAGE EFFECTIVE VARIABLE FIXED NON-INTEREST CARRYING INTEREST RATE INTEREST RATE INTEREST RATE BEARING AMOUNT $ $ $ $ Financial assets Cash and deposits Cash on hand and cash at bank 3.42% 476,830 0 800 477,630 Short term/at call deposits 3.58% 0 31,373,000 0 31,373,000

Receivables Cash Flow Facility – Producer Loans 3.56%–9.75% 0 391,279 0 391,279 Other receivables (excluding prepayments) N/A 0 0 42,397 42,397 Total financial assets 476,830 31,764,279 43,197 32,284,306

Financial liabilities Payables Other payables N/A 0 0 80,853 80,853 Total fi nancial liabilities 0 0 80,853 80,853 FINANCIAL STATEMENTS / 51 (d) Credit risk Film Victoria’s maximum exposure to credit risk at the balance sheet date in relation to each class of recognised fi nancial asset is the carrying amount of those assets as indicated in the Balance Sheet.

Within the Film Victoria Cash Flow Facility, the maximum exposure cannot exceed $3,000,000 for each of the following:

/ Any one Australian distributor, broadcaster or sales agent / Any one overseas distributor, broadcaster or sales agent / Any one producer (producers are eligible to apply to Film Victoria for an equity investment for the same project).

Credit risk in trade receivables is managed in the following ways:

/ By operating under payment terms of 30 days / Debt collection policies and procedures.

The following table discloses the ageing of fi nancial assets:

NOT PAST DUE BUT NOT IMPAIRED PAST DUE CARRYING AND NOT LESS THAN 30–90 90–365 2013 AMOUNT IMPAIRED 30 DAYS DAYS DAYS IMPAIRED $ $ $ $$$ Financial assets Cash on hand and cash at bank 633,574 633,574 0 0 0 0 Short term/at call deposits 25,044,000 25,044,000 0 0 0 0 Cash Flow Facility – Producer Loans 604,135 95,000 0 0 0 509,135 Other receivables (excluding prepayments) 1,026,166 1,026,166 0 0 0 0 Total 2013 fi nancial assets 27,307,875 26,798,740 0 0 0 509,135

NOT PAST DUE BUT NOT IMPAIRED PAST DUE CARRYING AND NOT LESS THAN 30–90 90–365 2012 AMOUNT IMPAIRED 30 DAYS DAYS DAYS IMPAIRED $ $ $ $$$ Financial assets Cash on hand and cash at bank 477,630 477,630 0 0 0 0 Short term/at call deposits 31,373,000 31,373,000 0 0 0 0 Cash Flow Facility – Producer Loans 514,135 391,279 0 0 0 122,856 Other receivables (excluding prepayments) 42,397 42,397 0 0 0 0 Total 2012 fi nancial assets 32,407,162 32,284,306 0 0 0 122,856

The impaired Cash Flow Facility Producer Loans are a er an impairment allowance of $509,135 (See Note 13 (a)). In relation to this Film Victoria holds the following security: \ Loan agreement with the producer \ Deed of charge on certain Producer’s rights to income and subsequent Deed of Variation extending the property charged \ Direction to pay the Distributor Company in Film Victoria’s benefi t \ Deed of Assignment of the Producer’s Stipulated Judgement on the Distributor Company. This is subject to ongoing negotiations. Until those negotiations are concluded, there is uncertainty in the assessment of the impairment allowance. Consequently, the realised value of the impaired Cash Flow Facility – Producer Loans may diff er from the carrying value. 52 (e) Interest rate sensitivity analysis Interest rate sensitivity analysis is based on balance of fi nancial assets not exceeding one year, which are at fi xed or fl oating rates. Minimum and maximum exposures are calculated at shi s of plus or minus two per cent respectively.

The table below details Film Victoria’s sensitivity to shi s in interest rate. The exposures are based on management’s best estimates of the possible adverse eff ects of changes in interest rate as at 30 June 2013 and 30 June 2012.

Market risk exposure – interest rate INTEREST RATE -2% +2% CARRYING ACCUMULATED ACCUMULATED 2013 AMOUNT NET RESULT SURPLUS NET RESULT SURPLUS $ $ $ $ $

Financial assets Cash and deposits 25,677,574 (513,551) (513,551) 513,551 513,551 Total impact (513,551) (513,551) 513,551 513,551

INTEREST RATE -2% +2% CARRYING ACCUMULATED ACCUMULATED 2012 AMOUNT NET RESULT SURPLUS NET RESULT SURPLUS $ $ $ $ $ Financial assets Cash and deposits 31,850,630 (637,013) (637,013) 637,013 637,013 Total impact (637,013) (637,013) 637,013 637,013

(f) Fair value The carrying amount of fi nancial instruments assets and liabilities recorded in the fi nancial statements are a fair approximation of their fair values, because of the short-term nature of the fi nancial instruments and the expectation that they are paid in full except where an impairment allowance has been made.

The following table shows that the fair values of the fi nancial assets are the same as the carrying amounts. CARRYING CARRYING AMOUNT FAIR VALUE AMOUNT FAIR VALUE 2013 2013 2012 2012 $$ $$ Financial assets Fair value measurement at end of reporting period using: Level 1 Short term/at call deposits 25,044,000 25,044,000 31,373,000 31,373,000 Level 3 Cash Flow Facility – Producer Loans 95,000 95,000 391,279 391,279 Total fi nancial assets 25,139,000 25,139,000 31,764,279 31,764,279 FINANCIAL STATEMENTS / 53 Level 3 Movement Reconciliation 2013 2012 $$ Opening balance 391,279 2,716,698 Loan advances 95,000 45,445 Loan principal repayments (5,000) (2,385,663) Impairments (recognised in Comprehensive Operating Statement) (386,279) 14,799 Closing balance 95,000 391,279

Note 14: Cash fl ow information For the purposes of the Cash Flow Statement, cash includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdra s. Cash at the end of the fi nancial year as shown in the Cash Flow Statement is reconciled to the related items in the balance sheet as follows:

(a) Reconciliation of cash and cash deposits

2013 2012 $$ Cash on hand 800 800 Cash at bank 632,774 476,830 Short term/at call deposits – programs and operating activities 12,148,135 16,887,135 Short term/at call deposits – Cash Flow Facility fund 12,895,865 14,485,865 Total cash assets 25,677,574 31,850,630

The Cash Flow Facility is a revolving loan facility. Short term/at call deposits – Cash Flow Facility may only be used to advance loans.

(b) Reconciliation of net result for the period to net cash fl ows from operating activities

2013 2012 $$ Net result from transactions (5,047,085) (2,083,022) Depreciation and amortisation of non-current assets 233,232 256,098 Gain/(loss) on sale of non-fi nancial assets 28,528 1,904 Impairment allowance 386,279 (14,799)

Changes in net assets and liabilities (Increase)/decrease in assets Current receivables (887,628) 702,794 Other current assets 37,435 22,399

Increase/(decrease) in liabilities Current payables (20,541) 24,485 Current provisions 7,946 25,296 Non-current provisions 855,576 18,630 Net cash from/(used in) operating activities (4,406,258) (1,046,216) 54 Note 15: Responsible persons The names of persons who were Responsible Persons at any time during the 12 month fi nancial reporting period are:

Minister for Innovation, Services and Small Business The Hon. Louise Asher MP

Governing Board Ian Robertson, President Debra Allanson Ann Darrouzet Joanne Dawson Dan Fill Lyn Maddock Kim McGrath (term expired January 2013) Michael McMahon David Parker Caroline Pitcher (appointed February 2013) Jan Sardi Daryl Talbot

Chief Executive Offi cer and Accountable Offi cer Jenni Tosi

Members of the Governing Board were remunerated. Remuneration was based on the Premier’s Appointment and Remuneration Guidelines for Victorian Government Boards Statutory Bodies and Advisory Commi ees.

Remuneration was based on the following bands: $30,000–$40,000 – (1 member) and $10,000–$20,000 (11 members). In 2012, 1 member was in the $20,000–$30,000 band and remaining members were in the $10,000–$20,000 band.

The remuneration of the Minister is reported separately in the fi nancial statements of the Department of Premier and Cabinet.

Remuneration received by the Accountable Offi cer in connection with management of Film Victoria during the period was in the range $220,000–$229,999 ($190,000–$199,999 in 2011/12). FINANCIAL STATEMENTS / 55 Note 16: Related party transactions Other transactions during the fi nancial year with Responsible Persons and Responsible Person-related entities are set out in the table below.

The transactions cover payments and receipts relating to Film Victoria programs for equity investments, production a raction, content development, Cash Flow Facility funding and professional development as well as participation in commi ees.

All such transactions are carried out at arm’s length with the entities involved and receive the same amount of scrutiny that applies to all applicants to the Film Victoria program.

20132012 ENTITY TRANSACTION TYPE $ $ Tosi Westside/Jenni Tosi & Ann Darrouzet Payments 0 0 Receipts (486) 0 Chocolate Liberation Front Pty Ltd/Dan Fill Payments 72,342 48,860 Receipts (5,500) (25,750) Zizani Films Pty Ltd/Ana Kokkinos Payments 0 13,000 Receipts 0 0 Big and Li le Films Pty Ltd/Michael McMahon Payments 0 0 Receipts (3,285) 0 Anatomy Productions Pty Ltd/Michael McMahon Payments 28,000 96,675 Receipts 0 (11,555) Matchbox Pictures Pty Ltd/Michael McMahon Payments 8,000 0 Receipts 0 0 The Slap Productions Pty Ltd/Michael McMahon Payments 0 27,500 Receipts 0 0 MSSA Productions Pty Ltd/Michael McMahon Payments 0 2,000 Receipts 0 0 Aussies in LA Productions Pty Ltd/Michael McMahon Payments 0 0 Receipts 0 (20,265) Underground Productions Pty Ltd/Michael McMahon Payments 9,838 167,250 Receipts 0 (25,500) Lost Boys Productions Pty Ltd/Michael McMahon Payments 320,000 0 Receipts (36,250) 0 Cascade Film Pty Ltd/David Parker Payments 5,255 655 Receipts 0 0 Breakaway Scripts Pty Ltd/Jan Sardi Payments 0 1,810 Receipts 0 0

Film Victoria’s Board, commi ees, internal staff assessment panels, CEO and staff are bound by the Confl ict of Interest provisions of the Film Act 2001 (sections 39–42), together with the Code of Conduct for the Victorian Public Sector (sections 34–37).

A member who has a confl ict of interest in a ma er must not be present during any deliberations on the ma er, unless the President directs otherwise, and is not entitled to vote on the ma er. 56 Note 17: Remuneration of executives Remuneration for Film Victoria’s executive offi cer was in the range of $130,000–$139,999, ($120,000–$129,999 in 2011/12).

Total annualised employee equivalent for Film Victoria was one, (one in 2011/12).

Note 18: Remuneration of auditors

2013 2012 $$ Victorian Auditor General’s Offi ce Audit of the fi nancial statements 19,510 20,250 Tot a l 19,510 20,250

Note 19: Events a er balance sheet date Film Victoria is not aware of any material events a er the balance sheet date which would aff ect these fi nancial statements.

Accountable offi cer’s and chief fi nance and accounting offi cer’s declaration The a ached fi nancial statements for Film Victoria have been prepared in accordance with Standing Directions 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash fl ow statement and accompanying notes, presents fairly the fi nancial transactions during the year ended 30 June 2013 and fi nancial position of Film Victoria at 30 June 2013.

At the time of signing, we are not aware of any circumstance which would render any particulars included in the fi nancial statements to be misleading or inaccurate.

We authorise the a ached fi nancial statements for issue on 26 August 2013.

I. Robertson J. Tosi G. Reeves President Chief Executive Offi cer Chief Financial Offi cer Film Victoria Film Victoria Film Victoria Melbourne Melbourne Melbourne 26 August 2013 26 August 2013 26 August 2013 Contents Introduction 1 YEAR IN REVIEW 12 Report of Operations 16 Financial Statements 32

Film Victoria ABN 30214 952 770 Published by Film Victoria Melbourne Victoria Australia September 2013 Also published on www.film.vic.gov.au © Copyright State of Victoria 2013 This publication is copyright. No part may be reproduced by FRONT COVER BACK COVER any process except in accordance Vigilante: SPEAK FOR THE DEAD PONy TRAILS with the provisions of the Copyright Divisive Media Tantalus INSIDE INSIDE Act 1968. Supported through Games Investment Supported through Games Investment FRONT COVER BACK COVER Authorised by the This report is printed on Revive Laser, DANCE ACADEMY – SERIES 3 SAVE YOUR LEGS TED ANATOMY – SERIES 4 Victorian Government. an Australian made 100% recycled* Werner Film Productions Save Your Legs Pty Ltd Universal Pictures Matchbox Pictures uncoated paper. Revive Laser is FSC® Supported through Supported through Supported through Production Supported through Production Investment Production Investment Incentive Attraction Fund (PDV) Production Investment Design certified and carbon neutral. Revive also Aer Design supports Landcare Australia. THE HUNTER POSSUM WARS THE OYSTERMAN PRANK PATROL – SERIES 3 Brown Cab Productions 360 Degree Films Brown Cab Productions ActiveTV *The cover of this report is printed on 300gsm Print Revive Laser which is FSC® Mix Certified and Supported through Special Initiatives – Supported through Supported through Special Initiatives – Supported through Press Print 70% recycled. Indigenous Production Grants Production Investment Indigenous Production Grants Production Investment FILM

Level 3, 55 Collins Street VICTORIA Melbourne VIC 3000 Australia [email protected] www.film.vic.gov.au ANNUAL FILM VIC T REPORT O R IA 

A NNU 2012/13 AL RE P ORT  2012/13